Gold rate today: On account of Israel Hamas war entering fifth day on Wednesday, gold prices have extended its rally for fourth straight session during morning deals. Gold future contract on Multi Commodity Exchange (MCX) for December 2023 expiry, opened ₹57,619 per 10 gm levels and went on to hit intraday high of ₹57,683 per 10 gm levels within few minutes of commodity market’s opening bell today. In international market, spot gold price is oscillating around $1,860 per ounce levels.
Likewise, silver rate today on MCX opened higher at ₹69,146 per kg but soon went under the profit booking heat and went on to hit intraday low of ₹69,010 per kg levels during morning deals. In international market, spot silver price is oscillating around $21.85 per ounce levels.
Israel Palestine conflict in focus
Speaking on the reason for rise in gold and silver prices, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Israle Hamas war has entered fifth day and it is expected to continue further as UN intervention is yet to make any positive impact on the geopolitical tension. This geopolitical tension has put US dollar under pressure as US dollar index has come below 106 levels."
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Anuj Gupta of HDFC Securities said that Israle Palestine conflict has put other assets under pressure and hence investors are looking at gold as ‘investors’ haven.’
Expecting more upside in gold prices in near term, Navneet Damani, Senior VP – Commodity Research at Motilal Oswal said, “If this unrest persists we could continue to witness an upside in safe haven assets and a fall in riskier assets. Physical gold demand improved in some Asian hubs last week as a recent dip in prices attracted buyers, with premiums in India hitting a 17-month high as jewellers stocked up ahead of the festival season."
US dollar to INR
“We expect the Rupee to trade with a slight positive bias on positive global equities on dovish Fedspeak and declining yields. However, geopolitical uncertainty due to the ongoing conflict Hamas and Israel may cap sharp upside. Rising crude oil prices and FII outflows may also weigh on Rupee at higher levels. Traders may remain cautious ahead of FOMC minutes tomorrow and inflation data from India and US later this week. USDINR spot price is expected to trade in a range of ₹82.80 to ₹83.70," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.
Important levels to watch
On important levels in regard to gold and silver prices, Anuj Guypta of HDFC Securities said, “Gold rate today is currently in $1,835 to $1,865 per ounce range and on breaching this hurdle, spot gold price may go up to $1,880 per ounce levels in near term. On MCX, yellow metal price has support placed at ₹57,100 per 10 gm levels whereas it is facing resistance at ₹57,750 to ₹57,800 per 10 gm levels. On breaching this furdle, gold price on MCX may go up to ₹58,500 in near term."
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‘Silver price has breached ₹68,000 per kg hurdle and it may go up to ₹70,000 and ₹73,000 levels in near term whereas in international market, we are expecting the white precious metal to go up to $22.50 per ounce levels in very short term if Israel Hamas war continues further," said Anuj Gupta.
Commodity market experts advised ‘buy on dips’ strategy in regard to gold and silver till Israel Hamas war subsides.
Source Link: Gold price extends rally for fourth straight session on Israel Palestine conflict. Opportunity to buy? | Mint