Gold and silver prices surge after Middle East peace deal. Check the latest rates in your city today.
Gold prices saw a strong rally in Monday's morning trade. According to data from Good Returns, the spot price of 24-carat gold in Delhi jumped by a massive ₹2450 to reach ₹1,51,680 per 10 grams.
Similarly, the price of 22-carat gold also increased by ₹2250 to ₹1,39,050 per 10 grams. Meanwhile, 18-carat gold was trading at ₹1,13,800 per 10 grams, up by ₹1840.
Along with gold, silver also surprised investors today. The spot price of silver in the Delhi bullion market leaped by a substantial ₹5000 per kg to reach ₹2,65,000. This is one of the largest single-day gains in recent times.
A bullish trend was also seen in precious metals on the Multi Commodity Exchange (MCX). At 10:45 AM, gold futures for August 5 delivery were trading at ₹1,53,096 per 10 grams, up by 1.71% or ₹2568.
Meanwhile, silver futures for July 3 delivery were trading at ₹2,52,699 per kg, stronger by 2.65% or ₹6513.
The biggest reason behind this unexpected surge is the peaceful atmosphere in the Middle East. The United States and Iran have announced a historic peace agreement, which has reduced tensions between the two countries.
This agreement has cleared the way for the opening of the Strait of Hormuz, a major oil route for the world. As a result, crude oil prices have fallen by more than 5%.
The decline in crude oil prices has eased global concerns about inflation. The market now expects that the US Federal Reserve will not need to keep interest rates at high levels for a prolonged period.
Market experts believe that, 'Reduced geopolitical tension and the expectation of a softer stance by the Fed has once again made gold attractive for investors.'
When interest rates are low, investors prefer to put money in gold compared to other investment options like bonds, as gold does not yield any interest. This is why gold prices have risen today.
Gold prices are also on fire in the international market. On the Comex, the price of gold reached $4,349.20 per ounce, a gain of 2.60% or $110.40. Meanwhile, gold spot was priced at $4,329.55 per ounce.
Global silver prices also saw a sharp rise. On the Comex, silver was trading at $70.54 per ounce, up 3.77%.
Gold prices have also increased in other major cities of India. In Chennai, 24-carat gold was at ₹1,53,490, while in Mumbai, Kolkata, Bengaluru, and Hyderabad, it was trading at ₹1,51,530 per 10 grams. The rate in Ahmedabad was ₹1,51,580.
This massive surge has raised investors' hopes. Geopolitical stability and signs of easing economic policies are creating a positive environment for gold and silver, which could continue to support prices in the coming time.
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