Gold prices rose on October 4, 2024, driven by safe-haven demand linked to escalating geopolitical tensions in the Middle East, particularly between Israel and Iran. Spot gold increased by 0.3% to $2,662.50 per ounce, following a record high of $2,685.42 reached on September 26. U.S. gold futures also saw a slight rise, climbing 0.1% to $2,682.10.
The dollar index eased by 0.1%, making gold more affordable for holders of other currencies. Analysts, including Ajay Kedia from Kedia Commodities in Mumbai, indicated that unless geopolitical risks diminish, gold prices are expected to remain elevated.
U.S. President Joe Biden mentioned ongoing discussions regarding potential strikes on Iranian oil facilities in response to missile attacks on Israel, while Israel conducted airstrikes in Beirut against Hezbollah. Such developments have contributed to gold's status as a safe investment amid uncertainty.
The U.S. nonfarm payroll report, due later in the day, could influence the Federal Reserve's policy, with traders anticipating a 69% probability of a 25-basis-point rate cut in November. A strong jobs report may lead to profit-taking in gold, according to Kedia. Additionally, silver, platinum, and palladium prices also saw increases, reflecting a broader trend in the precious metals market.
Reporting by Daksh Grover in Bengaluru; Editing by Rashmi Aich and Sherry Jacob-Phillips