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Gold scaled yet another record peak on Tuesday as traders snapped up the safe haven asset amid growing West Asia tensions, largely ignoring a stronger dollar and tempered bets for US rate cuts. Spot gold was up 0.9% to $2,269 per ounce after hitting an all-time high of $2,277.
Global oil benchmark Brent also rose above $89 a barrel for the first time since Oct as oil supplies faced fresh threats from Ukrainian attacks on Russian energy facilities and escalating conflict in West Asia.
Hitting an all-time high, gold prices in India rose to Rs 68,500 per 10 grams in Mumbai. In the previous session, the precious metal closed at Rs 68,450 for 10 grams. Silver prices climbed Rs 800 to Rs 75,500 per kg. In the previous session, prices had settled at Rs 74,700 per kg.
“We’re seeing some safe haven demand flowing into gold, which relates to the Israeli strikes on Iran’s embassy in Syria,” said Daniel Ghali, commodity strategist at TD Securities. The latest leg up in gold prices is probably also associated with short covering from family offices and proprietary trading shops, Ghali added.
Iran vowed to take revenge on Israel for an airstrike on the Iranian embassy compound in Damascus. Saxo Bank’s Ole Hansen said an underlying bid from retail and central banks was being joined by momentum-following speculators who have extended their already elevated longs following gold’s break above $2,200. The mix of bullish tailwinds has driven bullion nearly 10% higher so far this year.
Global oil benchmark Brent also rose above $89 a barrel for the first time since Oct as oil supplies faced fresh threats from Ukrainian attacks on Russian energy facilities and escalating conflict in West Asia.
Hitting an all-time high, gold prices in India rose to Rs 68,500 per 10 grams in Mumbai. In the previous session, the precious metal closed at Rs 68,450 for 10 grams. Silver prices climbed Rs 800 to Rs 75,500 per kg. In the previous session, prices had settled at Rs 74,700 per kg.
“We’re seeing some safe haven demand flowing into gold, which relates to the Israeli strikes on Iran’s embassy in Syria,” said Daniel Ghali, commodity strategist at TD Securities. The latest leg up in gold prices is probably also associated with short covering from family offices and proprietary trading shops, Ghali added.
Iran vowed to take revenge on Israel for an airstrike on the Iranian embassy compound in Damascus. Saxo Bank’s Ole Hansen said an underlying bid from retail and central banks was being joined by momentum-following speculators who have extended their already elevated longs following gold’s break above $2,200. The mix of bullish tailwinds has driven bullion nearly 10% higher so far this year.
