New Delhi
On Thursday, gold prices in India reached a historic high, with the Multi Commodity Exchange (MCX) recording a price of ₹76,899 per 10 grams. This surge is attributed to several factors, including the cautious stance of major central banks, declining bond yields, and increased geopolitical tensions.
Ajay Kedia, Director of Kedia Advisory, explained that the rise in gold prices is largely due to the dovish outlook from central banks, making gold an attractive option for investors seeking non-interest-bearing assets. He mentioned that the Federal Reserve is likely to cut interest rates in its upcoming meetings, with a 25-basis-point cut anticipated in November.
The uncertainty surrounding the U.S. presidential election and renewed conflicts in the Middle East, particularly Israel’s recent airstrikes on Lebanon, have further fueled demand for gold as a safe haven. Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, noted that global gold prices have also seen an increase, supported by falling U.S. Treasury yields.
Although there was a slight pullback in prices due to a stronger dollar, the ongoing geopolitical tensions have kept safe-haven demand robust. With prices reaching $2,700.60 per ounce in the global market, the combination of these factors suggests that gold may continue to rally as investors remain cautious in these uncertain times.
