On the MCX, gold February futures scaled higher by 1.5% to Rs. 39865, up Rs. 588 per 10 gm. In line silver March contract also soared by 1.51% or Rs. 709 to Rs. 47,731 per kg. The rally has been fuelled on account of escalating geopolitical tensions between the US and Iran.
International gold prices surged to a four month high on January 3, 2020 and were quoting at its highest price since September 5, 2019 at $1540.48 per ounce after the US airstrike at Baghdad airport resulted in the killing of Iran's Major General and Iraq's militia commander early on Friday. At the same time, gold price remained supported on the back of weakness in the greenback. Demand for gold surges in times of geopolitical and economic crisis as it is considered a safe haven investment and investors take shelter in the commodity to hedge their risk.
The bullion during the week has soared as much as 1.9% in price and is set for its fourth straight weekly surge.
Back home, gold imports have hit a 3-year low as demand has slumped due to high prices of gold, which in spot market for 22K and 24K today is priced at Rs. 38,210 and Rs. 39,210 per 10 gm.