Gold prices continue to rise amid rising tensions in the Middle East

Lucknow| Gold prices continue to rise amid rising tensions in the Middle East. There has been a definite rise in gold this week. The position of buyers remained intact despite higher purchases with higher gold prices due to the Iran-Israel conflict.

A slight increase in gold prices was seen on Saturday. The price of 24 carat gold in morning trading was Rs 7,785.3 per gram. This represents an increase of Rs 120 against Friday. At the same time, the price of 22 carat gold was Rs 7,138.3 per gram, which was Rs 110 more than Friday. “At a time of political instability in the Middle East, gold often becomes an alternative to safe investment, while crude oil prices respond rapidly due to concerns about supply disruptions”, said Narindra Wadhwa, managing director of SKI Capital Services Ltd.

Wadhwa further said, “There is an increasing demand to buy gold with uncertainty, because people consider it a safe investment”. Simultaneously, there is also speculation about oil shortages in the energy market, making both gold and oil a sign of global risk Trade analysts estimate that continued softening of interest rates will continue to interest gold buyers.

Globally, however, the price of gold fell 0.2 percent to $2,649.69 an ounce. Because American jobs increased in September while the unemployment rate dropped to 4.1 percent. US markets closed with gains on Friday after better jobs data. According to analysts, if geopolitical conditions become more adverse by the end of the week, gold prices will continue to rise. Amid volatility in global markets, including India, market observers have advised investors to remain calm as the situation is expected to improve soon.

On the other hand, stock investors are keeping an eye on the increasing conflict in the Middle East. Market pessimism is expected to continue in the future amid rising crude oil prices and inflow of funds into cheaper markets like China.