On Monday, gold rose to the highest level of about two months in the fourth consecutive session, as the conflict between Israel and Iran intensified over the weekend, increasing the possibility of widespread regional conflict, pushed investors to safe-hevan assets. According to the latest report, gold rose by 0.3% to $ 3,442.09 an ounce by 0246 GMT, reaching its highest level since 22 April at the beginning of the session. U.S. Gold futures rose 0.3% to $ 3,461.90.
Gold is often considered a safe asset at the time of geopolitical and economic uncertainty. Investors will wait for several decisions of the central bank’s monetary policy this week. Among them, there will be a special focus on the US Federal Reserve on Wednesday. In the June meeting on Wednesday, Fed is expected to keep its policy rate within 4.25% -4.50%. Traders are now expected to deduct a quarter percentage rate by September.
What is going on in MCX
Gold at India’s Commodity Exchange MCX was trading at 9.13 percent at 9.13 am for the August 5 contract at Rs 1,00,406 per 10 grams for the August 5 contract. At the international level, experts say that at this time the Iran-Israel struggle is increasing the joint political risk premium, which has promoted the safe demand for gold. Right now we are clearly broken above $ 3,400 and the rapid trend in short -term remains intact. We are looking at the resistance level at $ 3,500 and the new height above the $ 3,500 level is likely to break.
Why the price of gold increases
There can be many factor to increase the price of gold. The possibility of geopolitical instability or deep recession can increase the price of gold rapidly due to a safe-cutting conditions. As a yield-free asset, the gold increases with low interest rates, while the high cost of money usually puts loads on yellow metal. A strong dollar controls the price of gold, while a weak dollar is likely to increase gold prices.
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