New Delhi: Amid US-Iran face-off, gold prices in India surged to a new high of Rs 42,000 on Monday. “Gold soared to its highest in nearly seven years on Monday, as intensifying tensions in the Middle East drove investors towards the safe-haven metal, while palladium surpassed $2,000-level to hit a record high,” a Reuters report said. Also Read - Gold Prices Surge Today, Hit 4-Month High As Middle East Tensions Rise After US Airstrike on Baghdad
On MCX, February gold futures surged 2.3% or Rs 918 to a record high of Rs 41,030 per 10 gram. On Friday, gold prices had surged over 2% or ₹850 per 10 gram. The prices of the yellow metal have surged nearly Rs 1800 per 10 gram in the last two days.
Besides, silver rates also surged today. On MCX, Silver futures rose 2% or Rs 947 to Rs 48,474 per kg
On January 3 after a US airstrike on Baghdad that killed top Iranian commander Qassem Soleimani gold prices gained around 2 percent.
Speaking to Zee Business on the gold price outlook, Amit Sajeja, Research Analyst at Motilal Oswal Commodities said, “The gold price rise was expected as any further breakthrough in the second round of US-China trade talks. So, the market was expecting the gold price to go up to $1610 to $1630 per ounce while in the domestic markets at MCX, it was expected to hit Rs 41,000 per 10 gms. However, after the US-Iran standoff, gold price in global commodity markets may soar up to $1,700 per ounce and in the domestic MCX, it may hit Rs 42,000 per 10 gms in immediately.”
Earlier on Sunday, Middle East conflict escalated after Iraq parliament asked US and other foreign troops to leave following the killing of Iran’s most prominent general, Qassem Soleimani in an air strike carried out by United States on Friday.
US President Donald Trump threatened sanctions against Baghdad for the move, and said if troops did leave, Baghdad would have to pay Washington for the cost of the air base there.