Gold Prices Surge Amid Middle East Tensions
Internationally, spot gold is trading around $2,360 per troy ounce, reflecting a 0.70 percent increase from its Friday close. This rise in gold prices is attributed to the heightened geopolitical uncertainty, prompting investors to seek the safety of gold, a traditional safe-haven asset.
Amid escalating tensions in the Middle East following Iran’s drone and missile attack on Israel, gold prices have surged both globally and in India. On the Multi Commodity Exchange (MCX), gold futures maturing on June 5, 2024, were priced at Rs 72,302 per 10 grams at 11:30 a.m. today, marking a significant increase of Rs 541 from Friday’s closing of Rs 71,843.
Internationally, spot gold is trading around $2,360 per troy ounce, reflecting a 0.70 percent increase from its Friday close. This rise in gold prices is attributed to the heightened geopolitical uncertainty, prompting investors to seek the safety of gold, a traditional safe-haven asset.
The demand for gold as a safe haven has been further bolstered by central banks, which have been purchasing the precious metal in large quantities. Over the last two months, gold prices in India have seen a remarkable 17 percent increase, soaring from around Rs 62,000 per 10 grams to levels around Rs 72,700.
In the local market, the price of 24-carat gold in Delhi today stood at around Rs 72,690 per 10 grams, while in Mumbai it hovered around Rs 72,540. Chennai recorded the highest price at Rs 74,790 per 10 grams, with Kolkata and Bengaluru prices also remaining elevated, around Rs 72,540.
The surge in gold prices underscores investors’ growing concerns about the stability of other asset classes amidst escalating geopolitical tensions, driving them towards the safety and security that gold offers.
