New Delhi. Gold prices continue to rise amid increasing tensions in the Middle East. There has been a definite rise in gold prices this week. Buyers’ positions remained intact despite excess buying coupled with higher gold prices due to the Iran-Israel conflict. A slight increase was seen in gold prices on Saturday. In morning trade, the price of 24 carat gold was Rs 7,785.3 per gram. This represents an increase of Rs 120 compared to Friday. At the same time, the price of 22 carat gold was Rs 7,138.3 per gram, which was Rs 110 more than Friday. Narindra Wadhwa, Managing Director, SKI Capital Services Ltd. said, “At times of political instability in the Middle East, gold often becomes a safe haven investment option, while crude oil prices react sharply due to concerns of supply disruptions.
Wadhwa further said that uncertainty is leading to increasing demand for buying gold, as people consider it a safe investment. Along with this, there is also speculation about the shortage of oil in the energy market, due to which both gold and oil have become global risk signals. Trade analysts predict that the continued softening of interest rates will maintain the interest of gold buyers. However, globally gold prices fell 0.2 percent to $ 2,649.69 an ounce. Because American jobs increased in September while the unemployment rate decreased to 4.1 percent.
US markets closed with gains on Friday after better jobs data. According to analysts, if geopolitical conditions become more unfavorable by the end of the week, gold prices will remain bullish. Amid volatility in global markets including India, market observers have advised investors to remain calm as the situation is expected to improve soon. On the other hand, stock investors are keeping an eye on the increasing conflict in the Middle East. The pessimism in the market is expected to continue in the future amid rising crude oil prices and flow of funds to cheaper markets like China.