Gold prices have turned volatile as investors balance two opposing factors: increased demand for safe-haven assets because of geopolitical tensions and concerns over potentially tighter US monetary policy.
Recent reports indicate that gold declined after comments from US Federal Reserve Chair Kevin Warsh strengthened expectations of higher interest rates. Higher interest rates can make non-interest-bearing assets such as gold relatively less attractive.
Domestic gold prices were recently quoted around Rs. 1,56,780 per 10 grams, although prices could continue to fluctuate sharply depending on developments in the Iran conflict, the US dollar and bond yields.
Leave A Comment