New Delhi, Jun 13: Gold prices surged for the third consecutive session on Friday, bouncing Rs 2,011 to hit an all-time high of Rs 1,00,403 per 10 grams, as a weakening rupee and escalating tensions in the Middle East drove investors to the safe haven asset.
On the Multi Commodity Exchange (MCX), the most-traded August delivery contracts of the precious metal zoomed Rs 2,011, or 2.04 per cent, to hit a record high of Rs 1,00,403 per 10 grams in the morning trade.
Later, it traded at Rs 1,00,145 per 10 grams, up Rs 1,753, or 1.78 per cent, with an open interest of 16,602 lots on the bourse.
Gold future prices had on April 22 surged Rs 2,048 to hit a fresh record high of Rs 1,00,000 per 10 grams.
Subsequently, the October contract of the yellow metal jumped Rs 1,970, or 1.98 per cent, to hit a fresh peak of Rs 1,01,295 per 10 grams on the MCX.
Analysts said the sharp rally in gold prices was primarily driven by a weaker rupee and heightened geopolitical tensions in the Middle East, which spurred safe-haven demand for the precious metal.
On Friday, rupee declined 56 paise to 86.08 against the US dollar in the initial trade due to a spike in global oil prices and a firm dollar amid rising tensions in the Middle East following Israel’s attack on Iran’s nuclear sites.
On the global front, gold futures rose USD 41.62 per ounce, or 1.22 per cent, to trade at USD 3,444.02 per ounce.
“Gold prices rallied sharply amid escalating Israel-Iran tensions, boosting safe-haven demand. In the morning session, the precious metal breached the USD 3,420 per ounce-mark and hit 6-week highs,” Rahul Kalantri, Vice-President of Commodities at Mehta Equities, said.
Kalantri further said the rally in gold was further supported by the US producer price index (PPI) and core PPI data, which indicated cooling inflation in the US.
The data reinforced investor expectations that the US Federal Reserve may begin easing its monetary policy stance in the coming months.β(PTI)
