Gold price increases as Middle East tensions escalate

Gold prices surged on the Multi Commodity Exchange (MCX) today in India due to global market trends influenced by escalating tensions in the Middle East. As of 11:30 a.m., gold futures for June 5, 2024, were at Rs 72,302 per 10 grams, up by Rs 541 from Friday’s close.

The spot gold price in the international market is currently at $2,360 per troy ounce, reflecting a 0.70 per cent increase from the previous day. This uptick is attributed to a rise in safe-haven demand amidst geopolitical uncertainties worldwide.

Investors are turning to gold as a hedge against the volatile geopolitical landscape, leading to a surge in central bank purchases of the precious metal. In the past two months, gold prices in India have soared by 17 per cent, reaching levels around Rs 72,700 per 10 grams from the previous range of Rs 62,000.

In major Indian cities, the price of 24-carat gold varies, with Delhi recording Rs 72,690 per 10 grams, Mumbai at Rs 72,540, Chennai at Rs 74,790, and Kolkata and Bengaluru around Rs 72,540. The fluctuating prices indicate the widespread impact of global geopolitical tensions on the precious metal market.

The spike in gold prices is a direct result of the ongoing geopolitical crisis in the Middle East, particularly Iran’s recent drone and missile attack on Israel. Investors are closely monitoring the situation, leading to increased demand for safe-haven assets like gold. The current trend suggests a continued uptrend in prices as uncertainties persist in the global geopolitical landscape.