October 20. 2023
New Delhi, India
Gold Prices Hit Three-Month High Amid Middle East Tensions
Gold prices as on today, have reached a three-month high due to increasing safe haven demand fueled by concerns over the Israel-Hamas war. The Middle East conflict has left investors seeking assets like gold as geopolitical tensions escalate.
US Fed’s Rate Pause Adds to Gold Rally
In addition to Middle East tensions, the recent hint by US Federal Reserve Chairman Jerome Powell about a pause in interest rate hikes has played a significant role in the surge of gold and silver prices. Powell’s dovish stance on interest rates has halted the US dollar’s rally. When central banks signal lower interest rates, it makes non-interest-bearing assets like gold more attractive to investors.
Silver Prices Follow Suit
Silver prices have also followed the upward trend. Today, silver opened at ₹71,995 per kg and quickly reached an intraday high of ₹72,164. In the international market, silver is oscillating around $22.90 per ounce.
Safe Haven Appeal
Gold, often considered a safe haven asset, gains appeal during times of uncertainty and geopolitical tensions. Any signs of instability or concerns about the US dollar can lead to increased demand for this precious metal.
In conclusion, the recent surge in gold and silver prices is a combination of factors, with the US Federal Reserve’s rate pause and Middle East tensions playing pivotal roles. Investors are turning to precious metals as a reliable option in these uncertain times.
