Gold price update: Why the price of yellow metal experiencing an upward trend?
Gold price update: Gold prices are currently experiencing an upward trend, propelled by heightened geopolitical tensions in the Middle East, particularly in the wake of reports on Israel's drone airstrike in Iran. Experts in the commodity market suggest that concerns surrounding the Israel-Iran conflict have led to increased demand for gold as a safe-haven asset.
According to experts, the current trajectory of gold prices shows an upward movement, finding crucial support within the range of Rs 72,300 to Rs 72,270. The broader spectrum for MCX gold is estimated between Rs 72,300 and Rs 73,300 per 10 gram, as reported by LiveMint.
Experts say the current gold price is expected to fluctuate within a narrow band of $2,380 to $2,420 per ounce, with a potential wider range extending from $2,350 to $2,450 per ounce.
The rise in gold prices marks the sixth consecutive week of an upward trend, driven by escalating geopolitical tensions. Fears of the Iran-Israel conflict escalating further in the Middle East have contributed to the surge in gold prices, despite the US dollar strengthening.
Today's increase in gold and silver rates correlates with the rise in the US dollar index. The US dollar price has reached a five-month peak, with the US dollar index maintaining levels above 106.
Gold prices generally rise due to several factors, including political instability, conflicts in certain regions, and the perception of gold as a hedge against inflation and economic downturns. Changes in central bank policies, such as adjustments in interest rates or monetary policies that devalue currencies, also make gold an attractive investment. Furthermore, factors such as production constraints, demand for jewellery and investor sentiment contribute to the fluctuation in gold prices.
- With inputs from agencies
