Gold Soars Past $2,040 Amidst Geopolitical Unrest and US Inflation Surge

Published on Jan 12, 2024 14:10

Gold prices climbed over $25 to surpass $2,040 an ounce in Asian electronic trades on Friday, driven by escalating conflicts in the Middle East and a rise in US inflation, boosting investment demand for the precious metal. A US-led coalition conducted multiple attacks on Houthi targets in Yemen due to disruptions in Red Sea trade caused by the rebel group. However, gold is on track for a second consecutive weekly decline as traders tempered expectations of early interest rate cuts by the US Federal Reserve. Recent data revealed a 3.4% annual and 0.3% monthly increase in US consumer prices for December. MCX February delivery bullion futures were up around Rs 500 at Rs 62,210, reaching a high of Rs 62,356 per 10 grams earlier in the session.