Gold Prices Experience Selling Pressure as Ceasefire Announcement Impacts Markets

Gold Prices Experience Selling Pressure as Ceasefire Announcement Impacts Markets

VoM News Desk | October 17, 2023 | 10:56 AM IST | Breaking News | Follow on Google News

Gold Prices Experience Selling Pressure as Ceasefire Announcement Impacts Markets

Gold Prices Experience Selling Pressure as Ceasefire Announcement Impacts Markets

In a turn of events driven by geopolitical shifts, gold prices have faced a significant sell-off today. The recent announcement of a ceasefire between Israel and Hamas, coupled with a strengthening US dollar, has cast a shadow over the precious metal. This article delves into the factors affecting gold and silver rates, the impact of the US dollar, and the outlook for these commodities.

The day began with a downside for MCX gold, opening at ₹56,166 per 10 grams, but within minutes, it reached an intraday low of ₹59,000. The ceasefire announcement played a crucial role in these price fluctuations. The international spot gold price stands at around $1,912 per ounce.

Silver Rate Movement

Silver rates followed a similar trend, opening lower at ₹71,200 per kilogram and hitting an intraday low of ₹70,750. On the global stage, the silver price is currently around $22.50 per ounce.

Anuj Gupta, Head of Commodity & Currency at HDFC Securities, points out that the sell-off in gold prices began with the announcement of the Israel-Hamas ceasefire. While this created a panic among gold investors, Gupta emphasizes that the war is not over, and a sharp rebound could occur on any sudden developments. Additionally, the US dollar’s resurgence, with the index rising above 106 levels, is putting pressure on both gold and silver rates.

Impact on the US Dollar and INR Exchange Rate

The US dollar’s strength is a key factor influencing these precious metals. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, expects the Indian Rupee to trade with a slight negative bias due to global market risk aversion and elevated crude oil prices. Ceasefire talks could provide some support to the Rupee.

Prithviraj Kothari, National President at IBJA, highlights that the next resistance for MCX gold rate today is at $1,965 (₹60,000). For gold’s bull run to continue, it needs to sustain above this level. Silver has formed a bullish reversal pattern on weekly charts, indicating a short-term bottom. The rally is expected to continue towards $24 (₹73,500), making it an auspicious time to invest in precious metals.

Outlook for Gold Prices

Anuj Gupta of HDFC Securities points out that the gold price today remains sideways to positive, mainly due to the ongoing Israel-Hamas conflict. Immediate support for the international gold price is at $1,900, with crucial support at $1,880 per ounce. MCX gold rate today has immediate support between ₹58,800 and ₹58,750 per 10 grams, and its crucial support is at ₹58,300 per 10 grams. These levels will be crucial in determining the future of gold prices.

VoM News Desk

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