- Global price also rose due to weaker dollar and North Korea tensions
- Some analysts expect the gold to rise further
- Tracking gold, silver prices also went up today
5 Things To Know About Gold Price Rise1) The escalating tensions between North Korea and the United States and a weaker dollar persuaded investors to take refuge in assets perceived to be safe-havens like gold. US President Donald Trump said on Thursday he would prefer not to use military action against North Korea to counter its nuclear and missile threat but that if he did it would be a "very sad day" for the Pyongyang leadership.
2) Some analysts expect the gold to rise further. "Gold continues breathing thin air at these rarified levels with the next technical target at $1,375," says an analyst.
3) After recent US government report showed employers added fewer jobs in August than expected, some traders held to expectations that the Federal Reserve would wait until the middle of 2018 before raising rates. Higher interest rates tend to boost the dollar and push bond yields up, putting pressure on gold prices by increasing the opportunity cost of holding non-interest yielding bullion.
4) The weakness of the US dollar has also contributed to the rise in gold prices. The price of dollar-denominated assets like gold typically rise with the fall in the value of dollar. The dollar skidded today after European Central Bank chief Mario Draghi on Thursday suggested the central bank may begin tapering its massive stimulus programme later this year. The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.5 per cent at 91.187, after falling as low as 91.082, its weakest since January 2015.
5) Tracking gold, silver prices also went up by Rs 100 to Rs 42,000 per kg in the national capital.