Bullion prices up on safe haven demand

New Delhi: Gold prices jumped Rs300 to Rs58,350 per 10 grams in the national capital on Monday amid strong cues in international markets, according to HDFC Securities. The precious metal had closed at Rs58,050 per 10 grams in the previous trade. Silver also rallied Rs500 to Rs72,500 per kilogram.

“Geopolitical concerns cause a new wave of worldwide risk aversion, which helps safe haven assets like gold. In addition to hurting the market, the escalating geopolitical turmoil is a threat to global economic growth.

Amid these worries, the price of gold found new momentum to continue Friday’s recovery, which was driven by a mixed US labour market recovery,” said Saumil Gandhi, senior analyst of commodities at HDFC Securities. In the global markets, gold and silver were trading higher at $1,848 per ounce and $21.70 per ounce, respectively.

Navneet Damani, senior vice-president (commodity research) at Motilal Oswal Financial Services, said: “Gold prices rose as clashes between Israel and Hamas has raised the risk of a wider conflict in the Middle East and boosted the demand for safe haven assets like gold.”