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Home Gold News Gold Prices Hit Record High, Cross ₹77,500 Per 10 Grams On Geopolitical Uncertainty

Gold Prices Hit Record High, Cross ₹77,500 Per 10 Grams On Geopolitical Uncertainty

by anna

Gold prices have soared to record levels, breaching the $2,700-per-ounce mark for the first time ever amid rising geopolitical tensions and uncertainties surrounding the upcoming U.S. elections. This surge has propelled gold prices in India past ₹77,500 per 10 grams, reflecting strong safe-haven demand from investors seeking stability amid turmoil.

Current Market Performance

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Spot Gold Price: Increased by 0.5% to $2,706.76 per ounce as of 0220 GMT, marking a nearly 2% rise for the week.

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U.S. Gold Futures: Rose by 0.5% to $2,722.00.

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Tai Wong, a metals trader based in New York, commented, “Gold has scoffed at a surging dollar and rallies at every chance it gets. It’s just a bull market that shows no signs of exhaustion.” This sentiment reflects a strong demand for gold, even in the face of a strengthening U.S. dollar and rising Treasury yields.

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Recent U.S. economic data suggests a robust economy, which has supported the dollar. However, traders still anticipate a 90% likelihood of a Federal Reserve rate cut in November, which would enhance the appeal of non-yielding assets like gold. Additionally, the European Central Bank has cut interest rates for the third time this year amid a weakening eurozone economy.

Gold prices are expected to remain high in the coming months due to ongoing geopolitical tensions, particularly with Hezbollah’s threats to escalate conflict with Israel following the killing of Hamas leader Yahya Sinwar. The current climate has led analysts at BMI to forecast gold trading between $2,500 and $2,800 in the near future.

The precious metals market is experiencing overall gains:

Silver: Increased by 0.5% to $31.92 per ounce, trending toward a weekly gain.

Platinum: Rose by 0.5% to $996.85.

Palladium: Increased by 0.7% to $1,049.25.

Additionally, data indicated that China’s economy expanded by 4.6% in the third quarter, slightly surpassing analysts’ expectations, contributing to the overall market sentiment.

The combination of geopolitical uncertainty, economic conditions, and expectations of looser monetary policy has propelled gold to new heights, attracting investors looking for a safe haven. As tensions continue to unfold, gold is likely to remain a focal point for investors in the upcoming months.

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