Gold which is considered a safe haven has lost its appeal as risk appetite improves as US-Iran point at not entering into a deeper conflict. The US President confirmed that no US troops have been hurt in the attack by the Iran forces in Iraq. In the global market, gold price remained steady and retreated from their 7-year highs to $1551.50 per ounce by 6 am IST. Just a day before, prices scaled to as much as $1601.90.
The positive sentiment came in as US said it did not necessarily need to retaliate to Iran's attack on Iraq housing US troops. Meanwhile, foreign minister of Iran said the strikes to be as concluded.
Other factors weighing down the strength in the precious yellow metal were US private payrolls which stood at its highest in 8 months in the December month.
Back home also on the back of worsening US-Iran tensions, gold climbed to new record highs of Rs. 42000 per 10gm. On Thursday, on the MCX, gold is almost flat with an upward bias of 0.03% at Rs. 40121 per 10 gm. Silver March contract on the other hand traded with a discount of 0.2% or lower by Rs. 96 at Rs. 47295 per kg.
In the spot market, gold of 24 K in India is quoting at Rs. 41,160 with a change of just Rs. 10.