Gold prices surged to a two-week high in international markets on Wednesday, driven by a softer US dollar, technical buying, and escalating geopolitical tensions in the Middle East. Spot gold climbed as high as $4,141.59 per ounce, reaching levels not seen since July 7, as investors rushed to safe-haven assets amid ongoing US-Iran conflict and uncertainty over the Federal Reserve’s interest rate outlook.
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The rally extended to domestic markets, with 24-karat gold gaining Rs4,600 per tola to settle at Rs433,836. The price of 10 grams rose by Rs3,944 to Rs371,944, reflecting the broader strength in precious metalsĀ . Silver also moved higher, with per-tola rates increasing by Rs7 to Rs6,403.
Analysts attributed the price surge to a combination of technical support and renewed safe-haven demand. The market found strong support around $3,950-$4,000 per ounce before heading upward. Escalating tensions in the Middle East have lifted oil prices and inflation concerns, strengthening expectations that the Federal Reserve may keep rates higher for longer.
Despite potential headwinds from elevated interest rates, buyers have stepped in seeking value after a recent pullback. Investors now await next week’s Federal Reserve meeting for fresh clues on monetary policy, while ongoing diplomatic efforts between the US and Iran remain a key focus.
