Gold Nears $2000 amid Middle East Tensions

Published on Oct 20, 2023 14:48

Gold prices surged to a three-month high and are about to hit the psychological level of $2000 per ounce in mid Asia session today driven by growing tensions in the Middle East, which increased demand for gold as a safe-haven asset. These fears were compounded by a Gaza hospital blast and anticipation of an Israeli ground invasion. This week marked a second consecutive week of significant gains, with gold rising by over 2%. Remarkably, gold`s rally continued despite rising Treasury yields, briefly touching 5% for the first time since 2007. In related news, US Federal Reserve Chair Jerome Powell acknowledged that inflation remained high and could necessitate a slowdown in economic growth. He mentioned that current monetary policies were not excessively tight. However, the market still expects the US central bank to keep interest rates unchanged at its upcoming meeting. MCX bullion futures for December delivery rushed near Rs 61000 mark and were last seen trading up Rs 425 per 10 grams.