After Donald Trump’s victory in the presidential election, the price of gold fell by about Rs 5 thousand. However, now once again the price of gold is rising. On Thursday, the price of gold in the national capital jumped by Rs 1400 to Rs 79300 per 10 grams. Let us know why the price of gold is rising.
Gold prices are once again seeing a jump. According to the All India Sarafa Association, the price of gold in the national capital jumped by Rs 1,400 to Rs 79,300 per 10 grams on Thursday due to fresh buying by jewelers and retailers.
The precious metal of 99.9 percent purity closed at Rs 77,900 per 10 grams in the previous session. However, silver remained stable at Rs 93,000 per kg on Thursday. On Wednesday, the price of gold of 99.5 percent purity rose by Rs 1,400 to Rs 78,900 per 10 grams as against the previous close price of Rs 77,500 per 10 grams.
Meanwhile, the price of gold contract for December delivery in futures trading on MCX rose by Rs 568 or 0.75 per cent to Rs 76,602 per 10 grams.
Why are gold prices rising
Jatin Trivedi, VP Research Analyst, Commodity & Currency at LKP Securities, said, “Geopolitical tensions have revived the demand for safe investments. Also, new concerns have arisen over nuclear risks in the Russia-Ukraine conflict. This has led to a surge in gold prices.”
Trivedi said gold prices are expected to remain highly volatile in the short term due to geopolitical developments. Silver contracts for December delivery rose by Rs 318, or 0.35 per cent, to Rs 90,407 per kg on MCX. Globally, Comex gold futures rose by $19.80 an ounce, or 0.74 per cent, to $2,695.40 an ounce.
Russia-Ukraine tension trigger point
“Gold rallied as investors returned to safe havens after the crisis between Russia and Ukraine escalated. Ukraine has deployed UK-made missiles on Russian territory, following a recent attack by US-made long-range missiles,” said Saumil Gandhi, senior analyst, commodities at HDFC Securities.
Ukraine said on Thursday that Russia launched an intercontinental ballistic missile overnight, targeting the city of Dnieper in the country’s mid-east. If confirmed, it would be the first time Moscow has used such a missile in combat. This development has raised the possibility of a widespread crisis, thereby increasing the demand for gold as a safe-haven asset.