New Delhi: The gold prices continue to increase. The demand for gold has risen because of the weak US Dollar and geopolitical tensions. The gold rates touched a one-week high on November 19, 2024. Gold prices today shot to Rs 335 to Rs 75,382 per 10 grams in futures trade as speculators created positions on a firm spot demand.
On the Multi Commodity Exchange, gold contracts for December delivery traded higher by Rs 335 or 0.45 per cent at Rs 75,382 per 10 grams in a business turnover of 9,398 lots, PTI reported. Analysts were of the view that the fresh positions built up by participants led to an increase in gold rates. At the international level, gold futures surged 0.44 per cent to USD 2,623.35 per ounce in New York.
The rising trend in gold prices continues. The demand for gold has increased due to the weak US dollar and new geopolitical tensions. This is the reason why gold prices reached a one-week high on Tuesday, November 19. Spot gold rose 0.4 per cent to $2,623.54 an ounce, its highest level since November 12. American gold futures also went up by 0.5 per cent to $ 2,627.60 an ounce.
The effect of the increase in gold prices at the international level was also felt in India. Gold prices increased in the domestic futures market. At 9.30 am, gold rates on Multi Commodity Exchange i.e. MCX increased by 0.52 percent to Rs 75,435 per 10 grams. Whereas today’s high was recorded at Rs 75,450 per 10 grams.
Why Gold prices are rising
One of the reasons for the gold prices to increase is that the US dollar has weakened due to profit-booking by traders after last week’s jump. During this period, investors using other currencies have benefited and they are buying gold at a cheaper price which has further resulted in increase in the demand.
Ukraine-Russia conflict
With Russia launching its biggest air attack on Ukraine raised the geopolitical tension. Also, uncertainty has increased after Ukraine approved the use of missiles sent by America, which also resulted in rise in gold prices. Since gold performs well in times of uncertainty, there has been a rise in the price of gold.
US Federal Reserve
The interest rate cuts announced by the US Federal Reserve are reflected in the markets globally. Fed has reduced interest rates twice in September and October 2024. Meanwhile, all eyes are set on US Federal Reserve officials in regards to their decision on the interest rate cut in December.
If the Fed goes ahead with the rate cut, then low interest rates reduce the opportunities for holding gold, making it an attractive means of investment. Such a citation is also fuelling the price of gold and leading to increase in demand.
Gold Price to rise further
Goldman Sachs has projected the price of gold to rise further. The global brokerage predicted the prices of the yellow metal to reach $3,000 per ounce by December 2025. However, the Fed’s delay in cutting interest rates may reduce profits.
Gold futures increased Rs 335 to Rs 75,382/10g per 10 grams in futures trade as speculators created positions on a firm spot demand. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
