Gold prices cross $2,400 mark on Middle East tensions, up by 4% this week; silver surges to highest level since 2021

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Gold prices hit all-time high on strong US inflation figures, Fed rate cut buzz. Silver price also climbs a new peak Drawing inspiration from the upward movement of gold, platinum surpassed the significant psychological threshold of $1,000 per ounce, reaching its highest point in almost four months. The White House emphasized the genuine and substantial threat of a potential attack by Iran on Israel, without disclosing specific timing details.

It reiterated the unwavering commitment of the United States to defend Israel, underscoring the seriousness with which it approaches its obligations in this regard. “Gold price continues to trade to new historic record highs and tested $2400 in international and Rs72500 in the domestic market. This rally has been fuelled by a convergence of factors, including firmness in dollar index and bond yields, supported by central bank buying and anticipation of the U.S.

Federal Reserve’s interest rate cut. Besides, geopolitical tensions and market specific dynamics have also contributed to the upward trajectory of gold prices. However, given the lingering geo-political tensions, gold may experience a short-term surge, yet its ability to maintain such levels remains uncertain.

We are not advising for fresh purchases at this level," said Rahul Kalantri, VP-commodities, Mehta Equities Ltd. Gold's recent surge defied expectations, as traders tempered their anticipation for an imminent interest rate cut from the Federal Reserve. Also read: Gold price rise: Baffled by the increase, Chris Wood in Green and Fear explains likely reasons behind it “Gold prices experienced an uptick due to geopolitical uncertainties, increased central bank purchases, and heightened safe-haven demand.