Gold prices in the global market have hit a new high on October 18, rising above $2,700 an ounce. This increase is mainly due to rising tensions in the Middle East and the upcoming US elections. In India, the price of 24K gold has crossed Rs 78,000 per 10 grams, while the MCX gold futures price has also crossed Rs 77,000 per 10 grams.

The main reasons for the increase in gold prices

There are several important reasons behind this increase in gold prices:

Geo-political tension

The ongoing conflict between Israel and Hezbollah has raised concerns and uncertainty. With Hezbollah threatening to escalate tensions, many investors are looking at gold as a safe investment. In times of conflict, gold is considered a reliable asset, increasing its demand.

Concerns over the US economy

Although there are signs of economic strength in the US, many traders believe that the Federal Reserve may soon reduce interest rates. When interest rates fall, gold, which does not pay interest, becomes more attractive than other assets.

Uncertainty over elections

The upcoming US elections, which are a close contest between Kamala Harris and Donald Trump, are adding to the uncertainty in the markets. Uncertainty surrounding elections often leads investors to turn to safe assets, such as gold.

policies of central banks

Central banks around the world, such as the European Central Bank (ECB), are lowering interest rates to spur slowing economic growth. These rate cuts make traditional investments, such as bonds, less attractive, causing gold prices to rise.

Opinion of experts

Experts say that gold is benefiting from the ECB rate cut and geo-political tensions. According to an estimate, gold can be seen trading between $2,500 and $2,800 per ounce in the near future.

What next for gold investors?

Experts believe that gold prices will remain high due to geopolitical risks and economic uncertainties. Traders believe that there are no signs of gold prices slowing down. Gold remains attractive despite the strengthening of the dollar.

At the same time, for Indian investors, when gold is approaching Rs 78,000 per 10 grams, experts are advised to remain alert. The support level is expected to be between Rs 76,900 to Rs 76,640 per 10 grams, while the resistance level is around Rs 77,280 to Rs 77,500 per 10 grams.