New Delhi: Gold prices in India shot up today, while it climbed to a four-month high globally after US airstrikes in Iraq killed an Iranian commander, flaming new tensions in the Middle-East. Also Read - Gold Prices Down on Sixth Consecutive Day by 0.05% to Rs 37,551 Per 10 Gram on MCX
As per experts, gold is considered to be a safe investment at time of political and economic uncertainties. According to a Reuters report, a weaker dollar also provided some support to the metal. Also Read - Good News For Investors: Gold Prices Likely to Remain Low Before Dhanteras
“News from the Middle East along with some technical buying and a weaker dollar is supporting gold prices today,” Benjamin Lu, analyst at Phillip Futures told Reuters. Also Read - Gold Prices Recover After Sharp Fall: Is it a Good Time to Buy Gold?
On MCX, February gold futures surged over 1% or Rs 400 to Rs 39,680 per 10 gram while silver futures were up 0.83 per cent at Rs 47,410 per kg. The prices of the yellow metal have surged nearly Rs 1700 per 10 gram in the last two weeks.
In global markets, spot gold prices rose as much as 1 per cent to US$1,543.93 an ounce, the highest since Sept 5, and traded at US$1,541.77 at 2:03 pm in Singapore, up 0.6% amid tensions in the Middle East. Platinum too, advanced 0.5 per cent and palladium rose 0.2 per cent.
Meanwhile, gold traders are now awaiting the minutes of the US Federal Reserve’s December 10-11 policy meeting, which is due later today.
Iranian Major-General Qassem Soleimani, head of the elite Quds Force, and top Iraqi militia commander Abu Mahdi al-Muhandis were killed in the air strike on their convoy at Baghdad airport on Friday.
“At the direction of the President, the U.S. military has taken decisive defensive action to protect U.S. personnel abroad by killing Qasem Soleimani, the head of the Iranian Revolutionary Guard Corps-Quds Force, a U.S.-designated Foreign Terrorist Organization,” the White House said.