The ongoing conflict between Israel and the Palestinian Islamist group Hamas has notably influenced global gold prices. Market participants are closely watching the escalating situation between the two sides, with rising tensions in the Middle East prompting investors to seek the safety of gold. As a result, the price of gold saw an increase of 1.6% on Monday.
On Wednesday, the price of gold reached its highest level in almost two weeks. Spot gold climbed 0.5% to $1,869.70 per ounce, marking its highest since September 29. Meanwhile, spot silver jumped by 1.3% to reach $22.09 per ounce. Other precious metals saw changes as well, with platinum inching up by 0.3% to $882.83, while palladium remained steady at $1,169.83.
In India’s capital, Delhi, the price of gold in the Sarafa market surged by 100 rupees to INR 58,700 for 10 grams on Wednesday, up from INR 58,600 the previous trading day. Silver prices also witnessed an uptick, increasing by 400 rupees to settle at INR 73,000 per kilogram.
Additionally, the Indian rupee strengthened against the US dollar. On Wednesday, it closed at 83.18, up by 7 paise. This appreciation in the rupee came amidst robust domestic equity buying and a weakening US dollar in overseas markets. The rupee had started the day on a stronger note at 83.20 and traded between an intraday high of 83.15 and a low of 83.24. Concurrently, the dollar index was trading lower by 0.09% at 105.73.
This series of financial events underscores the global interconnectivity of political tensions and market behaviors, demonstrating the ripple effect of geopolitical disturbances on the economic landscape.