Gold prices decrease by Rs 2,900 in 10 days due to easing Middle East tensions: What’s in store for investors? | India Business News

Gold prices have seen a significant drop over the past 10 days, with the current rate standing at Rs 71,065 per 10 grams, down from a record high of Rs 73,958. This decline has been attributed to reduced concerns about geopolitical tensions in the Middle East, leading investors to shift their focus.

According to an ET report by Nishtha Awasthi, MCX June gold futures rose by Rs 36 to reach Rs 71,065 per 10 grams on Wednesday. Additionally, MCX May silver futures also saw an increase, reaching Rs 80,850 per kilogram.

The surge in gold prices to an all-time high on April 12 was driven by safe-haven buying amid the conflict between Iran and Israel. However, with tensions easing, prices have started to come down.

Suvankar Sen, MD & CEO of Senco Gold & Diamonds, highlighted that as Akshaya Tritiya approaches, many consumers see it as an opportune time to purchase gold. He also pointed out that global uncertainties persist, including conflicts in various regions, which could potentially push gold prices higher if they escalate.

Sen emphasized the importance of understanding political risks and tensions, as well as the potential impact of negative US unemployment reports leading to interest rate cuts. This has prompted consumers to buy jewelry in anticipation of a potential rise in gold prices.

In the US markets, spot gold fell slightly to $2,320.19 per ounce, the lowest price since April 5. Investors are now awaiting key US economic data to gauge the possibility of future interest rate cuts. The market is also keeping an eye on the March personal consumption expenditure data for insights into the Federal Reserve’s inflation outlook.