Gold Prices Surge Amid Geopolitical Tensions

Gold Prices Surge Amid Geopolitical Tensions/Mint

VoM News Desk | April 22, 2024 | 06:46 PM IST | Daily Gold Prices | Follow on Google News

Gold Prices Surge Amid Geopolitical Tensions

Gold Prices Surge Amid Geopolitical Tensions

As geopolitical tensions escalate in the Middle East, gold prices continue their upward trajectory for the sixth consecutive week, defying the strengthening US dollar. Despite the dollar’s ascent to a 5-month high and the US dollar index maintaining levels above 106, both gold and silver prices are on the rise due to safe-haven demand.

Reasons Behind Gold Price Surge

Experts attribute the surge in gold prices today to heightened geopolitical risks in the Middle East following reports of an alleged drone airstrike by Israel in Iran. This geopolitical uncertainty has bolstered demand for gold, offsetting concerns stemming from the strengthening US dollar. Commodity market analysts note crucial support levels for gold, with the MCX gold rate ranging from ₹72,300 to ₹73,300 per 10 grams.

Impact of Geopolitical Risks

Sugandha Sachdeva, Founder of SS WealthStreet, underscores the significance of ongoing geopolitical tensions in supporting gold prices despite headwinds from the US Federal Reserve’s monetary policy stance. As geopolitical risks persist, gold remains a favored asset among investors seeking refuge from market uncertainties.

Kotak Securities advises gold and silver investors to monitor developments related to the US Federal Reserve meeting and interest rates. With uncertainty surrounding potential rate adjustments and inflationary concerns, investors are urged to remain cautious amidst shifting market dynamics.

Outlook for Gold Prices

Sachdeva emphasizes the importance of support levels at ₹72,300 to ₹72,270 per 10 grams for the gold outlook. While current prices hover within the range of ₹72,300 to ₹73,300 per 10 grams, a breach of the support zone could trigger profit booking. Internationally, gold prices are supported around $2,350 per ounce, with resistance seen at $2,450 per ounce.

(Inputs from Mint

VoM News Desk

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