Gold prices at fresh high; zoom Rs 485 to Rs 41,810 per 10 gram on weaker rupee, escalating US-Iran tensions in West Asia

  • Gold prices on Wednesday climbed by Rs 485 to Rs 41,810 per 10 gram following the rise of geo-political uncertainty and a weaker rupee, according to HDFC Securities

  • Similarly, silver also jumped by Rs 855 to Rs 49,530 per kg from Rs 48,675 per kg on Tuesday

  • In the international market, both gold and silver witnessed bullish trend and were trading with gains at $1,584 per ounce and $18.43 per ounce, respectively

Gold prices hit fresh high on Wednesday and jumped Rs 485 to Rs 41,810 per 10 gram in the national capital following the rise of geo-political uncertainty in the West Asia due to the US-Iran tensions and a weaker rupee, according to HDFC Securities.

On Monday, gold prices in the national capital had hit an all-time high of Rs 41,730 per 10 gram following a pick-up in safe-haven demand for the metal.

Similarly, silver also jumped by Rs 855 to Rs 49,530 per kg from Rs 48,675 per kg on Tuesday, reported PTI.

 Gold prices at fresh high; zoom Rs 485 to Rs 41,810 per 10 gram on weaker rupee, escalating US-Iran tensions in West Asia

Representational image. Reuters

The yellow metal had closed at Rs 41,325 per 10 gram in the previous trade.

Gold rose following the rise of geo-political uncertainty and a weaker rupee, HDFC Securities Head - Advisory (PCG) Devarsh Vakil said.

"Higher international gold price and weaker rupee supported domestic gold prices to trade higher," he added.

The Indian rupee tumbled 20 paise to 72.02 against the US dollar in opening trade on Wednesday as Middle East tensions flared up after Iran fired rockets at US military bases in Iraq.

In the international market, both gold and silver witnessed bullish trend and were trading with gains at $1,584 per ounce and $18.43 per ounce, respectively.

On Tuesday, gold prices declined by Rs 420 to Rs 41,210 per 10 gram in the national capital amid a stronger rupee and profit-booking in the international market for precious metal.

On Monday, the prices of the yellow metal in the national capital had hit an all-time high level and zoomed Rs 720 to Rs 41,730 per 10 gram following a pick-up in safe-haven demand for the metal amid weak equities and bullish global trends.

Meanwhile, gold prices surged more than 2 percent in the international market on Wednesday, crossing the key $1,600 mark, as investors sought cover in the safe-haven metal after Iran fired rockets at Iraqi airbase which hosts US forces, reported Reuters.

Spot gold climbed 1.9 percent to $1,603.21 per ounce. Prices hit their highest since March 2013 at $1,610.90 earlier in the session. US gold futures rose 2 percent to $1,605.80.

But the metal pared gains later as investors awaited reaction from the White House.

“Gold is paring some gains right now as the retaliation was not seen as aggressive as the markets thought it would be and investors are booking profit for that reason,” Saxo Bank analyst Ole Hansen said.

The jump in the price of what’s viewed by investors as a safer asset in times of political and economic uncertainty came after Iran’s missile attack on US-led forces in Iraq early on Wednesday. The attack came hours after the funeral of an Iranian commander whose killing in a U.S. drone strike has raised fears of a wider conflict in the Middle East.

With inputs from agencies

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Updated Date: Jan 08, 2020 18:04:40 IST