Amid rising geo-political tension in the Middle East region on the rising fears of the Iran-Israel war, gold prices continue to scale high for the sixth week in a row. Interestingly, gold and silver prices have risen on the safe-haven demand despite rising US dollar rates. As gold and silver rates today are surging, the US dollar index is also scaling northward. The US dollar price has risen to a 5-month high and the US dollar index has managed to sustain above 106 levels.

According to commodity market experts, the gold rate today is on an uptrend due to the rising geo-political risk in the Middle East after the alleged reports of Israel’s drone airstrike in Iran. They said that the Iran-Iraq war fear has fueled demand for the haven offsetting the headwinds due to rising US dollar rates. Experts maintained that the gold rate today crucial support placed at ₹72,300 to ₹72,270 levels whereas the broader range for the MCX gold rate today is ₹72,300 to ₹73,300 per 10 gm. They also maintained that the gold rate today is in the small range of $2,380 to $2,420 whereas the broader range is $2,350 to $2m450 per ounce range.

Speaking on the reason for the rise in gold price today, Sugandha Sachdeva, Founder of SS WealthStreet said, “Gold prices have continued their relentless upside move for the sixth consecutive week in a row, hovering close to record highs. Despite a strong US dollar and indications from the US Federal Reserve that a restrictive monetary policy is likely to continue, gold prices surged by more than 1 percent. The US Fed’s stance is influenced by the strong US economy, labor market, and higher-than-expected inflation print for March.” However, the SS WealthStreet expert maintained that ongoing geopolitical risks in the Middle East offset this potential headwind for gold prices.

Advising gold and silver investors to remain vigilant about the US Fed news around the upcoming meeting and interest rates, Kotak Securities report says, “Focus might now shift to the US Fed meeting and US economic data. Minneapolis Fed President Neel Kashkari called for patience on rate reductions, saying the first move may not take place until 2025. New York Fed President John Williams also said that another rate hike isn’t his base case, but is still possible due to inflationary risks. Swaps are pricing in the first quarter point cut by September and less than 45 bps total cuts for the year.”

As per the Central Bank of Sri Lanka, gold rates in Sri Lanka stood at Rs. 725, 226.2293 per Troy ounce (31.1035 grams) as of Friday, April 19th 2024.