Israel-Iran War: Key Factors Influencing Gold Rate Today and Market Dynamics

Saturday, 5 October 2024, 06:59

Israel-Iran war developments are impacting gold price today as the US dollar rate rebounds. Investors are weighing gold price outlook amid geopolitical tensions. The domestic MCX gold rate shows resilience despite fluctuations.
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Israel-Iran War: Key Factors Influencing Gold Rate Today and Market Dynamics

Triggers for Gold Prices Amid Geopolitical Tensions

The situation surrounding the Israel-Iran war has created significant fluctuations in the gold rate today. Gold price in the domestic market saw an appreciation despite profit-booking in spot gold prices. The MCX gold rate ended the week with a 0.60% increase, reaching ₹76,190 per 10 gm. Meanwhile, spot gold price experienced a slight decline of 0.40%, closing at $2,653 per troy ounce.

Effects of US Dollar Rate on Gold Prices

Commodity market experts indicate that these price movements are largely due to the weakness in the Indian National Rupee (INR) against the US dollar rate. The INR dropped approximately 0.40% against the USD, consequently driving up gold prices domestically. However, a rebound in US dollar rates on the Forex market has led to profit-booking pressure internationally.

Gold Price Outlook Amid Ongoing Conflict

Despite these fluctuations, analysts assert that ongoing geopolitical tensions, particularly the Israel-Iran war, will continue to bolster gold prices at lower levels. Experts anticipate a substantial increase in gold price should the conflict escalate.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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