Gold prices surged today as geopolitical tensions between Iran and Israel escalated, overshadowing the rally in the US dollar index. Amidst fears of a potential conflict in the Middle East, investors flocked to safe-haven assets, driving gold prices to new highs. The ongoing crisis has raised concerns about the region’s stability and its potential impact on global markets.
Today, the price of gold experienced a notable upswing, reaching an intraday high of ₹72,362 per 10 grams on the Multi Commodity Exchange (MCX). This surge comes amidst mounting tensions between Iran and Israel, with fears of a potential conflict dominating headlines.
Royce Vargheese Joseph, Bullion & Energy Researcher at Kotak Securities, attributed the rise in gold prices to the escalating geopolitical uncertainty in the Middle East. The ongoing crisis has led investors to seek refuge in safe-haven assets like gold, pushing prices up by 1.60 per cent.
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, highlighted the surprising resilience of gold and silver prices despite the US dollar index’s rally. The US dollar reached a 34-year high against the Japanese Yen, yet demand for safe-haven assets remained strong amidst the escalating tension in the Middle East.
The recent exchange of attacks between Israel and Iran has further heightened geopolitical tensions in the region. Iran’s firing of more than 300 drones and missiles toward Israel in retaliation for an earlier strike on its consulate in Syria has escalated concerns of a full-scale conflict.
Efforts to de-escalate the situation are underway, with US Secretary of State Antony Blinken engaging with foreign ministers of key regional players and Defense Secretary Lloyd Austin holding talks with counterparts from Saudi Arabia and Israel. Despite these diplomatic efforts, the situation remains precarious, and market sentiment remains cautious.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, outlined key levels for gold prices, anticipating further gains in the near term. With geopolitical tensions persisting, gold is expected to maintain its upward trajectory, with near-term targets set at ₹73,700 and ₹75,200 per 10 grams.
The ongoing Iran-Israel conflict continues to drive uncertainty in global markets, leading investors to seek refuge in safe-haven assets like gold. As geopolitical tensions remain elevated, market participants must stay vigilant and closely monitor developments.
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