Gold Prices Soar on Renewed Demand and Geopolitical Uncertainty
Gold futures continued their upward trend for the second consecutive session on Wednesday, increasing by Rs 2,165 to Rs 1.46 lakh per 10 grams. This surge in prices was largely driven by a sharp rally in overseas markets due to renewed demand for the precious metal. According to Gaurav Garg, Head of Research at Lemonn Markets Desk, 'Gold extended their gains for the second straight session on Wednesday as investors increased safe-haven buying following renewed geopolitical uncertainty and a weaker US dollar.'
The Reserve Bank of India's decision to keep its benchmark repo rate unchanged at 5.25 per cent also contributed to the rally. Ajitabh Bharti, Co-founder & Executive Director at CapitalXB, stated that 'the RBI's current stance of keeping the policy rate on hold appears well balanced.' This balance is likely due to the ongoing US-Iran war continuing to cast a shadow over the global inflation outlook.
The October contract of gold on the Multi Commodity Exchange jumped by Rs 2,165, or 1.5 per cent, to Rs 1,46,464 per 10 grams. This increase in prices has significant implications for investors and traders alike, as it reflects the ongoing volatility in global markets.