Gold & Silver

Geopolitical tensions push up gold prices

Our Bureau Mumbai | Updated on January 09, 2018 Published on August 29, 2017

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Gold prices surged by another ₹245 per 10 grams to ₹30,673 (inclusive of GST) on Tuesday, fuelled by the geopolitical tensions unleashed after North Korea fired a ballistic missile over Japan.

Silver followed suit to recapture the₹41,000-mark by gaining ₹900 a kg to ₹41,100 on increased buying by industrial units and coin makers.

In the international market, the yellow metal was up 0.9 per cent to $1,322.41 an ounce, the highest intraday price since November 9 to trade at $1,317.

Reacting to North Korea’s missile attack, the Donald Trump Government, which has 28,000 troops in South Korea, is considering deploying more “strategic assets” to the Korean peninsula. The US, Britain, China, Russia and France plans to hold an emergency meeting to discuss how to combat North Korea, while the UN Security Council is expected to meet late on Tuesday. The US has assured that it is “100% with Japan”, and repeated its strong commitment to defend Japan.

On the business front, global financial markets will focus on this week’s US employment report to gauge the impact of Federal Reserve’s view on monetary policy through the end of the year. In addition, market players will keep an eye out on a revised reading of second-quarter US growth for further hints on the strength of the world’s largest economy.

Meanwhile in MCX, gold for October delivery was 1.22 per cent at ₹29,503 per 10 grams while the December contract rose 1.19 per cent at ₹29,601 on Tuesday. The February contract was up two per cent at ₹29,450 per 10 grams.

Published on August 29, 2017
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