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Skyrocketing Gold Prices Reach an All-time High


07 March 2020

OMMCOM NEWS


Mumbai: Amid US-Iran tensions, gold rates have surged over past two days and silver prices have also rallied in wake of a surge in global rates. It has hit a fresh high of above Rs 41,000 which is a seven-year high as intensifying tensions in the Middle East drove investors towards the safe-haven metal. 

 On MCX, February gold futures surged 2.3% or Rs 918 to a record high of Rs 41,030 per 10 gram. On Friday, gold prices had surged over 2% or Rs 850 per 10 gram. This takes two-day gain in gold prices in domestic markets to about Rs 1,800 per gram as Middle East tensions increased the appeal of safe-haven assets like gold. Silver rates also spiked today. Silver futures on MCX rose 2% or ?947 to Rs 48,474 per kg.

Sensex extended early losses on Monday as oil prices continued to surge over worries of a supply disruption as tensions between the two biggest oil-producing countries Iran and the US escalated.

Iran on Sunday said it will no longer abide by any of the limits imposed by 2015 nuclear deal, sparking fears of a military conflict.

Sensex fell nearly 700 points while the fear index, VIX shot up 17 per cent owing to the events unfolding after a US drone attack. In response to the killing of one of Iran's most powerful military commanders, General Qassem Soleimani, sending global financial markets into a tailspin ever since.

At 12.37 p.m., Sensex was down 633 points at 40,830.72. It opened at 41,378.34 from its previous close of 41,464.61. The broader Nifty slipped 195.55 points or 1.60 per cent to 12,031.10.

Except for IT stocks, which benefited from the sharp decline in the value of rupee against the US dollar, all other sectoral stocks traded with heavy losses.

The Indian rupee lost over 25 paise against the US dollar and surpassed the Rs 72 a dollar mark on Friday.

Meanwhile, the prices of safe-haven assets continued to edge up. Gold prices on Friday touched a record high of Rs 41,030 per 10 gram (February gold futures).

Besides, Iraq's parliament urged its leaders to expel troops from the US-led coalition after the US killed the high profile Iranian general Qassem Suleimani.

In a series of aggressive tweets, US President Donald Trump said: "They (Iran) attacked us, & we hit back. If they attack again, which I would strongly advise them not to do, we will hit them harder than they have ever been hit before!

".. If Iran attacks an American Base or any American, we will be sending some of that brand new beautiful equipment their way...and without hesitation," Trump said.