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As on : 21-May-2025

Other Markets - Bullion Markets
21-May-2025 14:34

Gold nears $3300 as Middle East tensions and weak dollar drive demand

Gold hovered near $3300 in mid-Asia trades on Wednesday, edging closer to a two-week high as investors turned to safe-haven assets. MCX gold futures surged past ₹95,500 per 10 grams, gaining over ₹700. The rally was driven by multiple global concerns, including a weaker US dollar following the Fed's cautious outlook and Moody's downgrade of the US credit rating due to rising debt. Geopolitical tensions escalated after reports emerged that Israel is considering a strike on Iranian nuclear sites, sparking fears of conflict in the oil-rich Middle East. Meanwhile, President Trump signaled he may step back from direct involvement in the Russia-Ukraine ceasefire talks, adding to market uncertainty. With global risks rising and the dollar under pressure, gold is seeing strong demand from both domestic and international buyers.

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