Mumbai: Geopolitical tensions and a slower growth rate has led investors rushing for the safe haven of gold, as the yellow metal prices have shown an acceleration of 5.5 per cent during the first week of 2020 itself. As per the market data, the yellow metal prices had risen by 24 per cent in 2019, while it had inched up by only 0.9 per cent in 2018.
In the domestic market, gold prices touched record highs this week, breaching the Rs 42,000 mark per 10 gram. In the international market too, prices are hovering around a seven-year high.A Yes Bank report on Wednesday said: “Gold prices closed higher overnight. Today, in early morning trade, gold prices crossed $1,600 per oz, first time in nearly seven years, as investors flocked to safe havens assets.”
The recent surge comes on the backdrop of the geopolitical tensions in the Middle East post a US drone attack killing Iranian Commander Qasem Soleimani. Further, tensions in the Middle East reached a new high on Wednesday after Iran’s Islamic Revolutionary Guard Corps (IRGC) said it launched a missile attack on the US airbase of Ain al-Asad in Iraq in retaliation against the death of Soleimani.Data provided by analysts showed that gold prices in 2018 rose by just 0.9 per cent and in 2017, it was up 12.7 per cent.