Gold Prices In US: Yellow Metal Rates Hit Record High Amidst Geopolitical Tensions, Speculative Buying

Gold prices continued their unprecedented rally on Monday, propelled by speculative fervour and ongoing geopolitical tensions in the Middle East. Despite robust US job growth in March, the allure of gold remained strong, with spot prices reaching new heights.

As of 0406 GMT, spot gold surged by 0.6% to $2,343.89 per ounce, after hitting a record peak of $2,353.79 per ounce earlier in the session. Concurrently, US gold futures experienced a 0.7% increase, climbing to $2,361.09 per ounce. This surge in prices was mirrored across various categories on April 8th, with both 22-carat and 24-carat gold witnessing slight upticks.

Notably, ten grams of 22-carat gold soared to $710, marking a $10 increase from the previous day, while the same quantity of 24-carat gold stood at $750, also rising $10 compared to the day before. The trend persisted in broader market analyses, with the cost for 100 grams of 22-carat gold escalating by $100 to $7,100, and 100 grams of 24-carat gold reaching $7,500, an increase of $100 from the previous day.

Moreover, the prices for 10 grams of 18-carat gold and 100 grams of the same category also witnessed an upward trajectory, rising by $8 to $581 and $80 to $5,810, respectively, compared to the previous day's figures. This steadfastness underscores the resilience of gold amidst market fluctuations and economic uncertainties.

Commenting on the surge, analysts pointed to geopolitical tensions in the Middle East as a significant driver for gold prices. The region's instability continues to stoke fears among investors, driving them towards safe-haven assets like gold. Additionally, strong central bank buying and inflows from momentum-following funds have contributed to bullion's impressive 12% gain so far this year.

Despite robust US job growth in March, which surpassed expectations and hinted at a solid economic footing, the anticipated Federal Reserve interest rate cuts may be delayed. Lower interest rates typically reduce the opportunity cost of holding gold, making it an attractive investment option for investors seeking refuge from volatile markets.

On the physical side, gold demand in India remained subdued last week, as soaring domestic prices deterred buyers. Similarly, in China, the top consumer of gold, premiums held firm amidst the blistering rally in prices.

In tandem with gold, spot silver experienced a notable increase, rising by 1.4% to $27.85 per ounce. Platinum also edged 0.1% higher, reaching $928.11, while palladium gained 0.4% to $1,006.88 per ounce.