Commodity Update: Simmering Middle East, rising demand add lustre to gold prices

In Delhi, Bengaluru and Chennai, the ten-karat gold price varied from Rs 60,910 to Rs 60,930 per gram.

Gold seems to be getting brighter as the warfront in the Middle East turns hotter. The price of 24-karat gold increased by Rs 270 to Rs 60,760 per 10 grams on Friday, while silver turned cheaper by Rs 500 to Rs 74,100 per kilogram. The 22-karat gold, too, surged in tandem by Rs 250 to Rs 55,700.

While the price of 24-karat gold in Mumbai, Kolkata and Haryana reached Rs 60,760, in Delhi, Bengaluru and Chennai, it varied from Rs 60,910 to Rs 60,930 per gram.

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The price of gold in the US reached its highest in three months on Friday, setting it up for a second straight week of gains, driven by heightened demand caused by the Middle East conflict and the prospect of a possible end to interest-rate hikes by the Federal Reserve.

At 1:32 GMT, the price of spot gold was stable at $1,973 per ounce, after having reached its highest level since July 20, while US gold futures rose by 0.3 percent to $1,986.00. Spot silver declined by 0.97 per cent to $22.97, while platinum was down by 0.5 percent to $895.00, and palladium declined by 0.55 per cent to $1,109.00.

In the Indian market, the price of one krona of silver in Delhi and Mumbai is currently Rs 74,000, while the price of silver in Chennai is Rs 77,000.