Gold Prices Surge Amid Geopolitical Tensions

Gold Prices Surge Amid Geopolitical Tensions

Gold Prices Surge Amid Geopolitical Tensions

Gold prices experienced significant gains during morning trading in the domestic futures market on October 18, aligning with positive trends in global markets. These surges were driven by concerns over the escalating Israel-Hamas conflict, sending shockwaves through the financial world.

Geopolitical Unrest Drives Gold to Monthly Highs

On Wednesday, gold prices soared by 1%, reaching their highest point in a month. The trigger for this remarkable surge was a deadly explosion in Gaza, intensifying fears of a regional conflict escalation. In times of uncertainty and turmoil, gold remains a sought-after safe-haven asset, and this situation was no exception.

Gold’s Resilience Amid Economic Data and Inflation Concerns

Despite robust economic data in the United States fueling expectations of prolonged low-interest rates, gold prices climbed over $100 since the onset of the conflict. The paradox of rising inflation is that it erodes the value of currencies, driving investors to seek refuge in gold, thus increasing demand and driving up its price.

MCX Gold for December’s fifth contract witnessed a 0.66% increase, reaching ₹59,608 per 10 grams by 10 AM. Analysts are keeping a close eye on the gold market.

Expert Opinions on Gold and Silver Trends

Manoj Kumar Jain, from Prithvifinmart Commodity Research, foresees a volatile week for both gold and silver. Jain anticipates that gold may hold steady at $1,884 per troy ounce, and silver prices at $21.80 per troy ounce. He recommends a strategy of buying on dips for both precious metals, indicating support and resistance levels.

In the MCX, gold finds support at ₹59,000- ₹58,880 and resistance at ₹59,400- ₹59,550. Meanwhile, silver has support at ₹71,000- ₹70,550 and resistance at ₹72,000- ₹72,800. Jain suggests taking advantage of price dips to target ₹60,000 for gold and ₹72,800 for silver in the very short term.

Brokerage firm SMC Global Securities anticipates gold trading in the range of ₹59,000- ₹59,500, and silver in the range of ₹70,800- ₹71,600, with a sideways to bullish bias.

IIFL Securities provides more insights, stating that gold’s support is at ₹58,980, and a drop below could test ₹58,750. On the other hand, resistance is expected at ₹59,460, and a breakout might propel prices to ₹59,710.

Rahul Kalantri, VP of commodities at Mehta Equities, also expects gold and silver to remain volatile during the day. He points out support and resistance levels for various markets.

These analyses provide a comprehensive view of the dynamic gold and silver market in the wake of ongoing geopolitical tensions.