Gold prices rise to 3-month high on back of safe-haven demand

Gold prices rose to a three-month high on Friday and have been headed for a second consecutive weekly acquire, on the back of a safe-haven demand due to the Middle East battle and expectations that the US Federal Reserve was doubtless to pause charge hikes.

Gold, seen as a protected retailer of worth throughout occasions of political and monetary uncertainty, has risen 2.2 per cent to date this week.

Gold prices crossed the Rs 60,000 per 10 gm on the Multi Commodity Exchange (MCX) on Friday and have been hovering at Rs 60,313 in afternoon commerce. In the worldwide market, prices have been round $1,976.40 per troy ounce.

Gold futures, maturing on December 5, 2023, stood at Rs 60,615 per 10 grams on the MCX, after recording a marginal hike of Rs 272.

As the Israel-Hamas warfare intensifies, there is a concern that it might escalate right into a broader geopolitical disaster involving the US and Iran. With Israel getting ready for a floor assault on Gaza and the US sending two plane carriers to the area, these fears have been exacerbated. Any escalation within the hostilities might disrupt oil provides and set off financial uncertainty worldwide.

According US media experiences, Fed Chair Jerome Powell mentioned he agreed “in precept” that the rise in yields was serving to to additional tighten monetary circumstances and this would possibly reduce the necessity for added charge will increase.

Anuj Gupta, Head of Commodity & Currency at HDFC Securities, attributes the latest enhance in gold prices to Chairman Jerome Powell’s dovish stance on rate of interest hikes. This has halted the US greenback’s rally, triggering the rise in gold prices.

Fitch Solutions takes a impartial stance for gold prices in 2023, projecting a median of $1,950 per ounce.

(With inputs from IANS)