Gold Touches New High for Third Consecutive Day: Report

New Delhi: Gold prices inched higher on Wednesday, climbing to a new high. According to publicly available data, international gold prices stayed above the physiologically relevant USD 3,000 per ounce mark.

At the time of filing this report, gold was being traded at USD 3,040 per ounce an all-time high.

“...rising Middle East tensions and trade uncertainties due to U.S. President Donald Trump’s tariff plans fueled demand for the safe-haven asset,” said Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services.

Global trade war and geo-political uncertainty have kept investors of other financial assets at tenterhooks, bringing in more demand for gold, a safe-haven investment bet.

Gold prices crossed USD 3,000 per ounce this month - a headline-worthy event, but the true significance for gold lies in the broader economic trends driving its rise. Gold surged from USD 2,500 per ounce to USD 3,000 per ounce in just 210 days.

This is a much faster increase compared to the historical trends, where it has typically taken an average of 1,700 days for gold to rise in USD 500 increments.

The speed of this latest price movement highlights the strong momentum gold has built over the past two years, driven by a combination of market fundamentals and investor sentiment.

“While gold may face some consolidation due to the speed of its latest move, the combination of geopolitical and geoeconomic uncertainty, rising inflation, lower rates and a weaker US dollar continue to provide powerful tailwinds to investment demand,” said World Gold Council in a note recently.

Coli Shah, MD of Kama Jewellery asserted that domestic prices of gold have crossed Rs 90,000 per ten grams because of geo-political reasons as India imports over 80 per cent of its gold consumption.  (ANI)

Also Read: Gold prices hit all-time high, cross Rs 86,875 per 10 gm

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