Gold price surged on Monday to a historic high of Rs 41,000 per 10 gram as tensions in Central Asia continue to soar. In the domestic Multi Commodity Exchange (MCX), the gold price has jumped by almost Rs 1,800 in the last couple of days.
Tensions and threat of war between Iran and the United States of America have resulted in global share markets tanking and crude oil price on the rise which has led to a spike in gold price across the world. In the international market, gold on Monday is trading close to a seven-year high.
The rise in gold price is being attributed to US President Donald Trump and Iran government threatening retaliatory strikes following the killing of Iranian Major General Qasem Soleimani in Iraq in an American drone strike. Moreover, the deadlock in US-China trade talks continues giving one more reason for investors to flock to gold.
Motilal Oswal Commodities research analyst Amit Sajeja who gave the reasons behind the gold price rise. “The gold price rise was expected as any further breakthrough in the second round of US-China trade talks. So, the market was expecting the gold price to go up to $1610 to $1630 per ounce while in the domestic markets at MCX, it was expected to hit Rs 41,000 per 10 gms.”
Sajeja also pointed pout that gold price will continue to rise in the near future and may even reach Rs 42,000 per 10 gram.
According to report, spot gold rose 1.7% to stand at $1,577.98 per ounce by 0409 GMT. Gold price had also rallied as much as 1.8% to touch $1,579.72, its highest since April 10, 2013, while the US gold futures gained 1.8% to $1,580.30.
US President Trump on Sunday also threatened to slap sanctions against Iraq after the latter asked American and other foreign troops to leave the country.