Amid intensifying tensions in the middle east, the gold prices on Monday surged to record high driven by a rally in global rates. With this, the prices of gold recorded highest in nearly seven years. While palladium surpassed $2,000 to hit a record high as US-Iran tensions drove investors towards the safe-haven metal.
Meanwhile, the prices of Silver also spiked on Monday in the wake of a surge in global rates.
On Friday, gold prices rose 2 per cent or ₹850 per 10 gram. This takes a two-day gain in gold prices in domestic markets toe in global rates, about ₹1,800 per gram. Silver futures on MCX rose 2 per cent or ₹947 to ₹48,474 per kg.
According to government sources, "India's gold imports in 2019 fell 12 per cent from a year ago to the lowest level in three years, as retail buying faltered in the second half after local prices rallied to a record high."
The Indian rupee today fell beyond ₹72 a US dollar amid a spike in global oil prices, further supporting gold prices. In global markets, gold prices today surged 1.5 per cent to $1,579.55 per ounce, the highest level in about six years.
Last year, the gold prices had surged nearly 25 per cent in domestic markets.
US President Donald Trump on Sunday threatened "major retaliation" if Iran avenges the killing of a key military commander and he warned of massive economic sanctions against ally Iraq if the country expels US troops based there. The twin threats came as Iran announced it was further reducing compliance with an international nuclear accord, ending limitations on numbers of centrifuges used to enrich uranium.
(With inputs from agencies)
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