Gold prices surge to record high on MCX amid rising geopolitical tensions
New Delhi, April 8 (IANS) Gold prices on the Multi Commodity Exchange (MCX) soared to a record high as international tensions in Central Asia drove up demand for the precious metal. Gold futures maturing on June 5, 2024, reached Rs 70,981 per 10 grams on the MCX, up by Rs 345 or 0.49% from the previous close of Rs 70,636. In the international market, spot gold rose by 0.6% to $2,343.89 per ounce after touching a peak of $2,353.79.
The increase in gold prices this year by 12% is attributed to central banks stocking up on the metal and investors seeking safe-haven assets amidst conflicts like the Israel-Hamas war and the Russia-Ukraine crisis. The US Fed’s indication of lower interest rates also drives up gold purchases as investors seek higher value in gold compared to financial assets offering lower returns.
In Delhi, the price of 24-carat gold was at Rs 71,430 per 10 grams, while in Mumbai it stood at Rs 71,280 and in Chennai at Rs 72,150. Despite the demand for gold in traditional ceremonies like weddings, jewellers note that the surging prices are dampening consumer buying trends, leading to a decline in imports of the metal.
“The reduction in interest rates signalled by the US Fed also leads to an increase in gold buying as investors see lower returns on the financial assets.” said a financial analyst.
Overall, the spike in gold prices on the MCX can be attributed to the ongoing geopolitical tensions, central bank buying, and heightened safe-haven demand among investors, pushing the precious metal to new highs in the market.
–IANS
sps/dan
