Global Gold Prices Marginally Cool After Israel Attack, Domestic Rally Continues

Domestic gold prices continued rally standing at Rs 78,780 as of 7:20 a.m., according to India Bullions Association. Futures prices of the commodity comfortably soared over Rs 78,500. Gold was trading at Rs 78,060 per 10 grams on Friday.

The futures prices for Dec. 5, according to the Multi Commodity Exchange, stood at Rs 78.577. Domestic prices for the yellow metal continued to rally amid festive season, driven by auspicious purchases.

International gold prices closed at $2,733 per ounce on Friday, after it rose to $2,740 at the intraday high. The global prices saw a marginal cool off but continued to stay of $2,700.

Geopolitical factors like Israel's strike on Iran, translating into a much restrained attack, have played into the prices. The Israeli attacks had avoided oil and nuclear facilities, according to Bloomberg. This has pulled back some demand for the safe haven asset, as the dynamic of geopolitical tension shifts after the strike. The uncertainty about response from Tehran further reduced the tension, driving a slight slip in global prices.

The international cues of US inflation and payrolls to be released in the week ahead is also set to influence the global prices. Surging by over 30% this week, the build-up to the attacks had pushed the global prices to over $2,750.

Spot prices for Silver stood at Rs 97,520 per kilogram, according to the Bullions Association. The prices have been on a steady climb amid the festive purchases. The commodity's prices had soared up to Rs 91,000 ahead of the festivities and managed to hit record highs through the season.

The futures prices for Silver also rose to Rs 97.269, according to Bullions at 7:20 a.m.