Yellow Metal Marks Another Rally; Gold Price Now Upwards Of Psychological Mark

International gold prices on Tuesday proceeded to a rallying heights - pushed by a weaker Dollar and anticipation among markets of a Fed rate cut.

Prices on US spot markets reflected a price of $3,655.90 per ounce - a 5.15 percent jump within the week and a nearly 10 percent gain in the last three months.

Among benchmark prices, Gold rates have surpassed levels of $3,500 per ounce according to data made available on London Bullion Market Association (LBMA). Although LBMA prices are not displayed real-time, despite the latency, the trend-movement on gold prices has been upwards.

Reflecting a similar bullish trend, Gold prices in India's domestic and sarafa markets too witnessed an escalation indicative of an unprecedented bull-run. On Tuesday, many gold jewellers and retailers displayed a price near or upwards of the psychological mark of Rs 1.10 lakhs per ten grams (or tola).

999 Gold or bullion prices provisioned by the India Bullion Jewellers Association has been reported at 1.09 lakhs per ten grams. The PM rates were yet to be published by IBJA as of the time of publishing this story.

Spot Gold and futures contracts trading on the MCX too reflected a marginal gain keeping in line with international trends.

Rallying gold prices ahead of a festive season are likely to cause unrest among consumers as well as showcase concerns. A bullish-jump in gold prices is usually indicative of weaker economy, high inflation, geopolitical instability, as well as currency worries. More importantly, a higher gold price is reflective of investors flocking to a safer haven - owing to lack of confidence in specific assets.

Disclaimer: This article should not be construed as an investment advice to invest in the yellow metal. This article is solely for educational purposes.