Mumbai, October 16 (IANS). Gold prices hit new record levels on Thursday as investors turned to the yellow metal for safe haven amid rising geopolitical tensions and economic uncertainty.
Expectations of cut in US interest rates and weakening of the dollar also increased demand for the yellow metal.
MCX gold December futures rose by nearly Rs 1,200, or 1 per cent, to hit a new record high of Rs 1,28,395 per 10 grams.
Similarly, MCX silver December futures hit a new high of Rs 1,64,150 per kg after gaining Rs 1,900 or more than 1 per cent.
In morning trade, gold futures on MCX were trading 0.60 per cent higher at Rs 1,27,960 per 10 gram, while silver futures were up 1 per cent at Rs 1,63,812 per kg.
Spot gold rose 0.4 percent to $4,224.79 an ounce in early trade.
Meanwhile, US gold futures for December delivery rose 0.9 per cent to $4,239.70 an ounce.
Gold, which has performed well in an era of low interest rates, has gained 61 percent so far this year.
The US dollar index fell 0.1 per cent to near a one-week low, making gold more attractive to foreign investors as it became cheaper against other currencies.
US officials on Wednesday criticized China’s expanded export controls on rare earth materials. He called it a threat to the global supply chain and hinted at possible retaliatory action.
“Amid geopolitical and economic uncertainties, gold and silver continued to rise both domestically and on COMEX due to expectations of US interest rate cut and a weak dollar,” the experts said.
According to experts, China has tightened its rare export controls, a move which has been criticized by US officials and has also hinted at the possibility of retaliation.
“Many data like CPI, retail sales are going to be released later this week, however, if the US shutdown continues then these data along with employment data may also get postponed,” experts said.
–IANS
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