“One day the price of gold will be higher than the Dow Jones.” – Marc Faber
Gold is considered a safe haven asset during unpredictable geopolitical situations and its price increased by around 2% in October after Hamas attacked Israel on October 7, 2023. But the hefty geopolitical risk premium which earlier had a positive impact on gold price faded in the last week of October. The impressive upward spike in Spot Gold price after almost a month’s low came as a relief for almost every gold investor last week.
Current Impact of Israel-Hamas War on Gold Price
MCX Gold witnessed losses by around 2.2% and hit more than 3-week's low in the second week of November after the overseas gold market became weak. Experts believe that the decline in gold price was caused due to reduced geopolitical concerns. But the demand for gold increased last week after further escalation in the ongoing Hamas-Israel war.
Last week Spot Gold prices recovered and rose to around $1993/oz and settled with a weekly gain of more than 2%. The sudden rise occurred after the US dollar weakened by around 1.9% and US Treasuries declined due to unfavourable US economic figures. The cost of holding non-yielding metals reduced and the price of gold increased.
A Closer Look at Last Week’s Gold Price
The price of Spot Gold rose by around 2.2% after its price declined for three consecutive weeks. MCX Gold trading hit the highest level of approx. ₹ 61914 per 10-gram last week after international gold markets became firm. Crucial resistance level is located at around 1995 and consistent trading above it might open doors for 2005-2020.
The Federal Reserve made some additional tightening last week and markets started betting on lower odds. There were no changes in the monthly US CPI in October. Market analysts believe that there is a high chance for the US central bank to leave CPI rates unchanged in December.
Demand for Digital Gold Amidst Geopolitical Tension
Though the festive season enhanced the demand for physical gold in our country, purchases were lower than last year as high gold prices (as compared to last year) put off few customers. Instead, people showed interest in digital gold investment as it offers the convenience of buying, selling and redeeming gold online from the comfort of your home.
Spot gold price has enhanced after a long wait and experts believe that a further increase is on the cards due to the ongoing geopolitical tension. So, it is now the right time to invest in digital gold. At myDigiGold, you can redeem the accumulated digital gold online at your convenience by visiting https://sencogoldanddiamonds.com/ or at any of our 150+ Senco stores.
Disclaimer: The data provided on this blog is for general informational purposes only. The data is based on our research and understanding, and we cannot guarantee its accuracy or reliability.