Gold rate today: Iran-Israel war news fuels gold price rally despite rise in US dollar rate, treasury yield
Gold rate today: Despite the continuous rally in the US dollar rates and the US Treasury yield, gold prices finished higher for the fourth week in a row. The MCX gold rate registered over ₹1,000 per 10 gm on Friday and touched a fresh high of ₹73,461 per 10 gm mark.
Similarly, silver prices touched a new peak of ₹85,051 per kg on MCX during Friday deals. According to commodity market experts, gold and silver prices are skyrocketing despite the rise in the US dollar rates and the US Treasury yields, which is because of the rise in demand for gold and silver as a safer haven.
They said that the immediate reason for the rise in the safer haven demand is escalating tension in the Middle East on Iran-Israel war buzz whereas US Fed rate cut speculations and aggressive gold buying by the Chinese central bank are also playing an important role in the current gold and silver prices rally. Speaking on the reason for gold and silver prices rally on Friday, Anuj Gupta, Head of Commodity & Currency at HDFC Securities said, "The primary reason for skyrocketing gold and silver prices can be attributed to the Iran-Israel war news.
The White House has issued a statement that Iran may attack Israel sooner than later, which has escalated the Middle East tension. That's why gold prices and other precious metal prices are skyrocketing despite the rise in the US dollar rates and the US Treasury yields." He said that the US Fed rate cut buzz after the strong US inflation figures last week and aggressive buying of physical gold by the Chinese central bank is also supporting the yellow and white metal price rally.
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