Gold prices jumped 1.7% on Monday following the drone attacks on Saudi Arabia’s oil facilities.
October gold futures prices today shot up by 1.7% to ₹38,163 per 10 grams as compared to Friday’s close of ₹37,503. Silver prices on MCX also shot up by 3% or ₹1,326 to ₹47,087 per kg.
The attacks on Saudi oil installations have lead to a rotation of interests out of stocks and into safe-havens.
The risk-averse sentiment in the market underpinned the bullion, often seen as an alternative investment during times of political and financial uncertainty.
With escalating tensions in the Middle East and hopes of more stimulus measures from major central bank, Gold could only shoot up even more.
Yemen’s Iran-backed Houthi rebel group claimed responsibility for the attack over the weekend on the world’s biggest oil-processing facility.
However, a senior U.S. official said that evidence indicated Tehran was behind it, and President Donald Trump said the United States was “locked and loaded” for a potential response to the attack, souring its already strained relations with Iran.
Source : Various