Gold is a safe investment: Gold price rose by Rs 1,910 to Rs 98,450 per 10 grams in the bullion market of the national capital as a purchase phase started as a safe investment due to increasing global uncertainty. The All India Bullion Association gave this information. Gold with 99.9 percent purity closed on Tuesday at Rs 96,540 per 10 grams.
Gold with 99.5 percent purity rose by Rs 1,870 to Rs 98,000 per 10 grams (including all taxes) on Wednesday, which closed at Rs 96,130 per 10 grams in the previous day. Chintan Mehta, Chief Executive Officer (CEO) of Abans Financial Services, said the weak dollar supported gold prices. Investors are also evaluating the sovereign risk after Moody’s degraded the US credit ratings due to concerns of fiscal deficit.
Why investors’ trend towards gold: Mehta said that it has increased uncertainty about the long -term stability of US finance, inspiring investors to look for safe assets such as gold. Apart from this, silver prices rose by Rs 1,660 to Rs 99 thousand 160 per kg (including all taxes) on Wednesday. Silver closed at Rs 97,500 per kg in the last trading session.
On the global front, the spot gold increased by $ 21.79 or 0.66 percent to $ 3,311.76 an ounce. Senior research analyst at HDFC Securities-Soumil Gandhi said gold on Wednesday retrieved $ 3,300 levels amidst increasing geopolitical stress and American fiscal concerns.
Nervousness among investors: Gandhi said that in the meantime, the ongoing uncertainty about the fee policies and the upcoming significant voting on the major tax reforms of President Donald Trump are increasing the nervousness among investors, weakening the US dollar and increasing gold. AVP-Join Research Kayanat Chanwala, AVP of Kotak Securities, said the rising geopolitical stress promoted gold prices after the report of a possible Israeli attack on Iranian nuclear facility centers. Chanwala highlighted that traders would be closely watching on the address of the US Federal Reserve officials. (Language/Webdunia)
Edited by: Vrijendra Singh Jhala
