Gold`s Safe Haven Lustre Fades Amid Diplomatic Initiatives

Published on Oct 25, 2023 13:11

Gold futures saw a decline in safe haven demand as diplomatic efforts to ease the Israel-Hamas conflict`s escalation into a broader Middle East crisis took center stage. After reaching a high of $2,009.20 an ounce earlier in the week, the precious metal faced pressure. Investors were also cautious ahead of critical US GDP and inflation data that could influence the Federal Reserve`s upcoming monetary policy decision. In addition, reports indicated an uptick in US private sector growth in October, while the Eurozone experienced unexpected business activity contraction. Geopolitical developments in the Middle East remained a focus, but as diplomatic efforts prevailed, the safe-haven appeal of gold diminished. MCX December gold futures are trading down Rs 77 at Rs 60460 per 10 grams. Gold prices in India receive a boost as Diwali approaches, with the festival`s tradition of buying gold jewelry and gifts driving increased consumer demand, leading to higher prices.