Gold Prices Rise Amid Middle East Crisis

New Delhi: Gold prices in India witnessed a significant rise on Monday, mirroring a global trend driven by escalating geopolitical tensions in the Middle East. The uptick comes after Iran’s drone, missile attacks on Israel yesterday.

Gold futures contracts maturing on June 5th, 2024, soared on the Multi Commodity Exchange (MCX) by Rs 541, reaching Rs 72,302 per 10 grams at 11:30 AM IST. This represents a substantial increase compared to Friday’s closing price of Rs 71,843.

The international gold market also displayed strength, with spot prices hovering around $2,360 per troy ounce, reflecting a 0.70% rise from Friday’s close. This surge is primarily attributed to a rise in safe-haven demand from investors seeking refuge from the global uncertainty fueled by heightened geopolitical tensions.

Central banks across the globe have also reportedly been actively accumulating gold, further contributing to the price increase.

In India, gold prices have witnessed a remarkable rise of approximately 17% over the past two months. Prices have climbed from a range of Rs 62,000 per 10 grams to current levels near Rs 72,700.

On Monday, the price of 24-carat gold varied across major cities in India. Delhi witnessed prices around Rs 72,690 per 10 grams, while Mumbai followed closely at Rs 72,540. Chennai recorded the highest price at Rs 74,790, while Kolkata and Bengaluru saw prices hover around Rs 72,540.