Gold Surges 1.31% Amid Escalating US-Iran Tensions and Oil Price Spike
The price of gold rose by 1.31% this week due to escalating tensions between the United States and Iran, as well as a significant increase in crude oil prices.
The US-Iran conflict led to a surge in Brent crude prices, which briefly crossed the $100-a-barrel mark after Yemen's Houthi rebels claimed responsibility for strikes on two Saudi tankers in the Red Sea. This caused investors to seek safe-haven assets like gold and silver.
On Friday, MCX gold August futures rose 0.17%, while MCX silver September futures gained 1.33%. The price of 10 grams of 24-carat gold stood at Rs 1,43,781, up from Rs 1,41,915 at the start of the week on Monday.
The risk premium on precious metals increased as a result of the US-Iran tensions and attacks on tankers in the Red Sea. However, gold and silver moved into a range-bound pattern later in the week due to revived inflation concerns and a strengthening dollar.