Gold prices rose in the domestic futures market on Monday. A jump was seen in the price of gold on September 30 in the Multi Commodity Exchange of India (MCX). Investors’ attention remained on US Fed Chairman Jerome Powell’s comments and developments related to geopolitical tensions in the Middle East. MCX Gold for December 5 was trading 0.47 per cent higher at ₹76,075 per 10 gram at 11:02 am. Similarly, according to the official website of Multi Commodity Exchange of India, the futures price of silver for December 5 was also trading at Rs 92,060 per kg with an increase of 0.72 percent today.
Fed Reserve’s rate cut likely
Gold prices have seen a good rally in the domestic and international markets recently, mainly driven by optimism regarding US Fed rate cut and tensions in the Middle East. Let us tell you, on September 12, the US Fed started cutting the benchmark rates by 50 bps (0.50%). It is believed that the central bank will cut rates by another 75-100 bps this year. Gold prices are being affected by rising tensions in the Middle East following Israel’s attacks on Iran-backed forces. Israel killed Hezbollah leader Sayyid Hassan Nasrallah in Beirut and has increased attacks in the region.
positive trigger for prices
Israel’s escalating attacks against Hezbollah in Lebanon and the Houthis in Yemen have raised fears that the fighting in the Middle East could get out of control, Reuters reports. Iran and the United States can also be included in this. Geopolitical tensions, economic uncertainty and interest rate cuts are positive triggers for gold prices.
condition of other commodities
The futures price of crude oil for October 21 was trading at Rs 5786 per barrel with an increase of 1.62 percent on Monday. Whereas the futures price of copper for October 31 was at Rs 865 with an increase of 1.02 percent on Monday. Zinc futures for November 29 were trading at Rs 283 with a gain of 0.75 per cent at 11:02 am today.
