Gold rates reached 4 months high near Rs 40,000
Chennai: crafting geopolitical tensions between the United States and Iran after one of Iran's generals was killed by an airstrike led international gold prices in the spot market to a maximum of four months of $ 1,538 per ounce on Friday . Considered a safe haven for investment in times of uncertainty, gold rates in international markets are slowly moving towards the record high of $ 1,560 per ounce, recorded in September last year.
The global increase in yellow metal prices, combined with the weakness of the rupee, also pushed up prices in local markets. In Delhi and Mumbai, spot prices rose almost 2.5% to Rs 39,950 per 10 grams, while here they rose to Rs 41,380. On Friday, the rupee weakened in 44 rupees paise to Rs 71.81 per dollar. On Friday alone, the average jump in gold prices was around Rs 700, while in the last two weeks it has added around Rs 2,000. This outbreak occurred after a moderate trend in November and early December.
Analysts predict that gold prices will rise further as Iran has threatened retaliation. “The immediate resistance is close to $ 1546/ounce. By breaking the resistance, the price could approach the September 2019 highs of $ 1560/ounce, ”said Ravindra Rao, vice president of Kotak Securities (chief, product research).
However, some analysts believe the increase could be short-lived and Friday's peak was an instinctive reaction. The associate director and chief of Motilal Oswal (commodities and currencies business), Kishore Narne, said high prices would prevail for a week and soften if tensions between the United States and Iran did not increase. Among other precious metals, the price of silver also in the domestic market. rose in Rs 750 on Friday to play Rs 49,344 per kilogram.