Gold flares up on safe haven demand

Published on Oct 09, 2023 14:27

COMEX Gold futures spiked impressively today, starting the week on an impressive note as the safe haven demand pushed up the commodity after recent losses. Gold had tanked to lowest since March 2023 in last session amid sustained gains in US dollar and a quick correction in Crude oil. However, Hamas launched an overwhelming attack Israel over the weekend to ensure that Middle East turns a hotspot for the global economy and financial market participants.

UN Secretary-General António Guterres on Saturday condemned “in the strongest terms” the attack by Hamas against Israeli towns. Media reports are noting that Hamas`s assault on Israel was the biggest escalation between the two sides for decades. Early Sunday, the UN peacekeeping operation in Lebanon, UNIFIL, “detected several rockets fired from southeast Lebanon toward Israeli-occupied territory in the general area of Kafr Chouba and artillery fire from Israel to Lebanon in response”, according to the UN.

For Gold market, these are conventionally the times to get back in the demand zone and the latest dip that took the metal from $1950 per ounce to $$1820 per ounce in two weeks is providing good impetus to the COMEX Gold futures now. The yellow metal currently trades up 1% at $1862 per ounce- hitting highest in one and half weeks. MCX Gold futures are also up 0.93% at Rs 57402 per 10 grams after hitting a high of Rs 52561 per 10 grams.