Market Outlook

Gold Prices Highest in 4 Months Due to Tension in Middle-East

Gold Prices Highest in 4 Months Due to Tension in Middle-East

The price of gold soared dramatically with the news of a US airstrike on an Iranian commander in Baghdad. The killing of Major-General Soleimani, commander of the elite Quds force, near Baghdad airport created turmoil in the Middle-East.

Gold prices rose this Friday with traders attempting to move over to safe-haven destinations. The situation in the Middle-East caused gold prices to rise up by 0.6% to $1538.42 in the United States. As a result, gold prices have hit a 4-months high.

Spot gold has reached its highest price since September 5. It has touched a price of $1540.48. On the other hand, the United States gold fortunes have gone up by 0.9% to $1541.20 per ounce.

Gold Price Rise Twice in Three Days in India

Gold prices shot up today in the Indian market owing to the gains in the International market. The gold future increased by 1.10% to Rs. 39,710 per 10 grams. Moreover, gold prices displayed an impressive upsurge in the spot market. 24 karat gold price in Delhi went up to Rs.39,892 per 10 grams.

Gold is often regarded as a secure investment by countries during economic and political turmoils. The central bank of China declared on Tuesday that it is going to release about 800 billion yuan to support its slowing economy.

Moreover, US President Trump announced that the signing of Phase I of the US-China Trade Deal will take place in the White House on January 15. The cumulative effect of all this has yielded a positive impact on the gold market.

The reserve at SPDR Gold Trust, the largest gold-based exchange fund, rose 0.23% to 895.30 tonnes this Thursday. It is the highest since November 29.