Gold jumps to 7-year high amid Mideast unrest, more jumps expected

New Delhi, Jan 6 (KNN) Forthcoming wedding season might put a burden on wallets of domestic gold buyers as the yellow metal soared to its highest in nearly seven years on Monday, due to intensifying tensions in the Middle East.

The unrest amid Middle East drove investors towards the safe-haven.

The Indian rupee today too fell beyond Rs 72 a US dollar amid a spike in global oil prices, further supporting gold prices and eventually, it might impact Indian gold requirements imports.

On Multi Commodity Exchange (MCX), February gold futures surged 2.3% or Rs 918 to a record high of Rs 41,030 per 10 gram. On Friday, gold prices had surged over 2% or Rs 850 per 10 gram. This takes two-day gain in gold prices in domestic markets to about Rs 1,800 per gram as Middle East tensions increased the appeal of safe haven assets like gold. Silver rates also spiked today. Silver futures on MCX rose 2% or Rs 947 to Rs 48,474 per kg.

Speaking to KNN India, over the same, Ketan Shroff, spokesperson India Bullion and Jewellers Association of India, said that such jumps are expected in furture also.

''If the tension escalates, amid Mid East, such jumps prices can be seen in future also,'' he asserted.

Iraq on Sunday called for US and other foreign troops to leave amid a growing backlash against the US killing of a top Iranian military commander that has heightened fears of a wider Middle East conflict.

US President Donald Trump threatened sanctions against Baghdad on Sunday for the move, and said if troops did leave, Baghdad would have to pay Washington for the cost of the air base there.

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