Latest Gold Price Today: From US Recession Updates to Israel-Iran Tensions – Top 5 Reasons to Invest in Gold Now

Gold rate today: The gold price has surged following uncertainty in the US economy after US jobless claim data hit a three-year high and escalating tension in the Israel-Iran conflict. The Multi Commodity Exchange’s gold price for October 2024 opened at ₹70,044 per 10 gm, reaching an intraday high of ₹70,511 per 10 gm before retracing to an intraday low of ₹69,720.

Experts in the commodity market attribute the gold price hike to the Central Bank of Japan’s interest rate increase, which has sparked uncertainty in the global economy. The geopolitical tensions in the Middle East and the US-China trade war have also contributed to the strong demand for gold as investors seek safe haven assets amidst market turmoil. The US dollar index has dropped to a five-month low, adding to the attractiveness of gold as an investment.

Trigger for gold price rush

Prithviraj Kothari, National President of the Indian Bullion and Jewellers Association (IBJA), explained that the rise in gold prices is a result of economic uncertainty globally following Japan’s interest rate hike. With major assets like the US dollar and global equity markets under pressure, gold has emerged as a favored investment choice.

Further predictions suggest that the spot gold price could reach $2,500 per ounce, while the MCX gold rate may hit ₹72,000 in the near future.

Anuj Gupta, Head of Commodity & Currency at HDFC Securities, echoed similar sentiments, emphasizing the impact of Japan’s interest rate hike and the US jobless claim data on the surge in gold prices. The escalating geopolitical tensions in the Middle East have further fueled the rush towards gold as investors seek stability amidst market fluctuations.

Both experts recommend taking advantage of the current gold rally but advise caution due to potential liquidity issues, suggesting a review of positions around the ₹72,000 mark.

Top 5 reasons to buy gold

1] Rate hike by Central Bank of Japan: Market uncertainties following Japan’s interest rate hike have made gold an attractive investment.

2] US recession fear: Renewed concerns about a US recession have prompted investors to shift their focus to gold and other precious metals.

3] Geopolitical tension: Escalating tensions in the Middle East have bolstered gold prices as investors seek safe assets.

4] Weakness in US dollar, treasury yields: The weakening US dollar and Treasury yields have led investors to turn to gold and silver as alternate investments amid market uncertainties.

5] US-China trade war: Ongoing tensions in the US-China trade war have added to the rally in gold prices, further supporting the demand for the precious metal.

Investors are advised to consider short-term gold targets of ₹71,000 and ₹72,000 per 10 gm, with a stop loss at ₹69,000 and a buy-on-dip strategy until the gold price remains above $2,400 per ounce in the international market.

Despite potential margin calls impacting gold prices in the commodity market, investors are encouraged to view any dips as favorable buying opportunities.

Disclaimer: It is essential to consult certified experts before making any investment decisions as the views and recommendations expressed are those of individual analysts or broking companies and not Mint.