Gold Prices Continue to Surge Amid Israel-Hamas Conflict

Gold Prices Continue to Surge Amid Israel-Hamas Conflict
Gold Prices Continue to Surge Amid Israel-Hamas Conflict
Gold Prices Continue to Surge Amid Israel-Hamas Conflict
Gold Prices Continue to Surge Amid Israel-Hamas Conflict

Gold Prices Continue to Surge Amid Israel-Hamas Conflict

Gold Prices Continue to Surge Amid Israel-Hamas Conflict

Gold Prices Continue to Surge Amid Israel-Hamas Conflict

In the wake of the ongoing Israel-Hamas conflict, gold prices have extended their rally for the fourth consecutive session. Gold futures for December 2023 on the Multi Commodity Exchange (MCX) opened at ₹57,619 per 10 grams and quickly surged to an intraday high of ₹57,683 per 10 grams within minutes of the commodity market’s opening. Meanwhile, in the international market, spot gold is hovering around $1,860 per ounce.

Similarly, silver prices on MCX started the day on a higher note at ₹69,146 per kilogram but soon faced profit booking, reaching an intraday low of ₹69,010 per kilogram during the morning trading session. In the international market, spot silver is fluctuating around $21.85 per ounce.

Geopolitical Tensions Drive Precious Metal Prices

The ongoing Israel-Hamas conflict has contributed to the rise in gold and silver prices. The conflict, now entering its fifth day, shows no sign of immediate resolution despite UN intervention attempts. This geopolitical tension has also put pressure on the US dollar, with the US dollar index falling below 106 levels.

Investors are turning to gold as a ‘haven’ asset amid the uncertainty surrounding other financial markets. As per Navneet Damani, Senior VP – Commodity Research at Motilal Oswal, if the unrest continues, there could be further upside for safe haven assets and a decrease in riskier assets.

Rupee Outlook and Market Factors

Market experts are closely watching the impact of these geopolitical tensions on the currency markets. While the Rupee is expected to have a slight positive bias due to global equities and dovish Fedspeak, ongoing conflicts, rising crude oil prices, and FII outflows may limit sharp upside movements. Additionally, market participants are advised to remain cautious ahead of the FOMC minutes and inflation data from India and the US.

Key Levels to Monitor

Regarding gold and silver prices, experts suggest that gold is currently in the $1,835 to $1,865 per ounce range. Breaking this barrier may push spot gold prices up to $1,880 per ounce in the near term. On MCX, gold prices have support at ₹57,100 per 10 grams and resistance at ₹57,750 to ₹57,800 per 10 grams. A breakthrough of this resistance level could lead to gold prices on MCX reaching ₹58,500 in the near future.

Silver prices have breached the ₹68,000 per kilogram barrier and may reach ₹70,000 and ₹73,000 levels in the near term. In the international market, the white precious metal may go up to $22.50 per ounce in the short term if the Israel-Hamas conflict persists.

Commodity market experts advise a ‘buy on dips’ strategy for gold and silver until the Israel-Hamas conflict shows signs of subsiding.

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