Gold Prices Soar for Second Straight Session Amid Geopolitical Uncertainty

Gold prices surged for the second consecutive session on Wednesday, driven by renewed geopolitical uncertainty and a weaker US dollar. On the Multi Commodity Exchange (MCX), the October contract of gold rose by Rs 2,165 to Rs 1,46,464 per 10 grams.

The rally is attributed to increased safe-haven buying as investors seek refuge in the precious metal amidst global tensions. The Reserve Bank of India's decision to keep its benchmark repo rate unchanged at 5.25% for a fourth consecutive meeting has also contributed to gold's rise, with policymakers seeking greater clarity on inflationary pressures.

International Comex gold futures also saw gains, rising to USD 4,226.50 per ounce in New York. Analysts attribute the surge to optimism over a potential agreement to reopen the Strait of Hormuz, which has eased geopolitical tensions and pushed oil prices lower.