New Delhi: Gold prices rise as they continued their northward trend amid increased tension in the Middle East, significantly increasing this week. Even if prices had been overbought, the Iran-Israel confrontation has kept buyers’ holdings intact.
Gold prices rose slightly on Saturday. In the morning session, 24-carat gold cost Rs 7,785.3 per gram, up Rs 120. The rate of 22-carat gold was Rs 7,138.3 per gram, up Rs 110 on Friday.
According to Narinder Wadhwa, Managing Director at SKI Capital Services Ltd, gold often serves as a safe haven during times of geopolitical instability, particularly in the Middle East, while crude oil prices react sharply to concerns over supply disruptions.
“The uncertainty fuels a flight to safety in gold and drives energy markets to speculate on potential oil shortages, making both commodities a barometer of global risk sentiment,” said Wadhwa.
Trade analysts anticipate that continued easing of interest rates will keep gold buyers interested.
However, gold prices dropped by 0.2 percent to $2,649.69 per ounce globally, as US job growth increased in September and the unemployment rate slipped to 4.1 percent. US markets closed higher on Friday after stronger-than-expected jobs data.
According to analysts, gold prices could further accelerate if geopolitical conditions become unfavourable over the weekend.
Amid the volatility in global markets, including India, market watchers have advised investors to stay calm as the situation will likely improve soon.
Stock investors are monitoring the escalating conflict in the Middle East. Market pessimism is expected to continue in the near term amid rising crude prices, and fund flows to cheaper markets like China.
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–IANS
