Gold Prices Rebound as Investors Assess Geopolitical Tensions

Gold prices rebounded in early Asian trade on Thursday, September 24, after three consecutive sessions of declines. This comes as investors assess developments around the US-Iran conflict and oil prices.

The COMEX December gold futures contract was at $4,332.40 an ounce, up $14 or 0.32% from the previous close. Silver, however, remained under pressure, with COMEX silver futures down $0.294 or 0.45% to $64.67 an ounce.

Kaynat Chainwala of Kotak Securities attributed the decline in gold and silver prices to a stronger US dollar and expectations of tighter monetary policy.

Akshat Garg, Head of Research & Product at Choice Wealth, pointed out that domestic gold prices had risen around 60% in a year due to global factors such as the rally in gold prices, rupee depreciation, and increased import duty. Elevated prices are changing buying patterns, with consumers opting for lighter jewelry and digital gold.