Gold Touches $4600 As Geo-political Tensions Escalate
Gold surged above the milestone of $4,600 an ounce and silver $84.5 per ounce for the first time on Monday as investors sought safety amid intensifying geopolitical risks and rising uncertainty around US monetary policy independence
Chennai: Gold prices moved past $4600 an ounce, while making a new all-time high amidst escalating geo-political tensions. This pushed domestic prices to over Rs 1.44 lakh per 10 gm in the Indian spot market.
Gold surged above the milestone of $4,600 an ounce and silver $84.5 per ounce for the first time on Monday as investors sought safety amid intensifying geopolitical risks and rising uncertainty around US monetary policy independence.
Gold in the Delhi spot market touched Rs 1,44,600 per 10 gm and silver Rs 2,65,000 per kg. In the Multi Commodity Exchange, gold moved up to Rs 1,41,643 and silver Rs 2,65,481.
“Tensions escalated after strong warnings from Iranian leadership against foreign intervention, following threats from the US amid deadly nationwide protests. Adding to market unease, comments from the Federal Reserve Chair regarding a subpoena and potential criminal indictment raised concerns about political pressure on the central bank,” said Kedia Commodities.
The latest clash between US President Donald Trump and Federal Reserve Chair Jerome Powell marks the most serious escalation yet in a long-simmering conflict over US monetary policy.
Powell said the Department of Justice served the Fed “with grand jury subpoenas threatening a criminal indictment related to my testimony before the Senate Banking Committee last June.” Federal prosecutors are conducting a criminal investigation of Powell relating to the $2.5 billion renovation to the central bank’s headquarters in Washington DC, and his related testimony to Congress.
At the same time, weaker-than-expected US employment data reinforced expectations of additional interest rate cuts later this year. Investor attention now turns to upcoming US inflation figures for clarity on the policy outlook. Meanwhile, uncertainty persists after the US Supreme Court deferred its decision on the Trump-era tariffs case, with the next ruling expected later this week.
“Short-term volatility will remain in both gold and silver and the market is due for some profit-booking. However, fundamentally there are several factors that are supporting bullion,” said Ajay Kedia, MD, Kedia Commodities. END