Gold Price India: 24 Carat Yellow Metal Price Rises By Rs 1530 In Single Day

Gold price India witnessed a sharp rally today as war between Israel and Hamas enters its 8th day. In India, price of 22 carat of 10 grams gold is Rs 55,400 after the surge of Rs 1400 and cost of 10 grams of 24 carat yellow metal is Rs 60,440 after the rally of Rs 1530 on Saturday.

Price of 100 grams of 22 carat gold is Rs 5,54,000 after the surge of Rs 14,000 and cost of 100 grams of 24 carat yellow metal in India is Rs 6,04,400 after gain of Rs 15,300.

Gold Price In Leading Metropolitan Cities In India

In Chennai, you have to pay Rs 55,550 for 10 grams of 22 carat gold and Rs 60,600 for 10 grams of 24 carat precious metal. In Delhi, price of 10 grams of 22 carat gold is Rs 55,550 and 24 carat gold price is Rs 60,590/10 grams. In Kolkata, you have to pay Rs 55,400/10 grams for 22 carat gold and Rs 60,440/10 grams for 24 carat yellow metal. In Mumbai, price of 22 carat gold is Rs 55,400/10 grams and cost of 24 carat precious metal is Rs 60,440/10 grams.

Gold Is Considered A Safe Investment During Geopolitical Tensions

The ongoing conflict between Israel and Hamas have pushed investors all across the globe to jump to safe assets such as gold. The impact of war on yellow metal's market is because of the fact that investors view gold as safe heaven. When Russia-Ukraine war began, prices of gold recorded a surge. About one week after Ukraine-Russia war began, price of precious metal exceeded $2000 an ounce. And, similar situation has occurred now after war began in the Middle-East.

Why Gold Prices Have Been Maintaining An Upward Trajectory?

In India, gold prices have become dearer by Rs 3000 for 22 carat of 10 grams gold while 24 carat gold prices surged by Rs 3280 per 10 grams.

As per the Reuters report, "Investors are fleeing to safe havens as the risks of Middle East tensions grow," said Edward Moya, senior market analyst at OANDA. "If the geopolitical situation gets gloomier, there is a good chance that gold prices could go to the $2,000 levels this year. We have come from mid-$1,800s to mid-$1,900s, $2,000 is just a fraction of that."

According to Anuj Gupta, HDFC Securities, "gold price in international market has now immediate support placed at $1,910 per ounce levels whereas it has crucial support placed at $1,880 levels. On the upper side, $1,950 and $1,980 are the immediate targets. On MCX, gold price has immediate support placed at Rs 58,800 levels whereas its crucial support is placed at Rs 58,300 per 10 gm levels. On the upper side, gold price is facing resistance at Rs59,800 levels. On breaching this hurdle, the yellow metal price on MCX may go up to Rs 60,500 per 10 gm levels."

According to Kotak Securities, "Gold prices poised for a weekly gain amid Israel-Hamas war, dovish Fed comments. The major risk is the confrontation evolving to a multi front war in the middle-east, aiding the safe haven bids for the yellow metal. The odds of another Fed rate hike is diminishing, as policymakers see higher treasury yields (which tightens financial conditions) to do the job and achieve a soft landing."

Gold prices jumped more than 3% on Friday and were poised for their best week in seven months as the intensifying conflict in the Middle East sent investors scurrying for safe-haven assets, according to Reuters.
Spot gold jumped 2.8% at $1,921.39 per ounce and U.S. gold futures soared 2.7% to $1,934.60 on Friday.
Gold prices in India have been witnessing an upward rally since October 6 and it will be interesting to see how precious metal reacts in the coming days as festival season is set to kick off.