Amid the ongoing conflict between Israel and Hamas, gold prices registered a 0.54% increase today, reflecting heightened demand for the safe-haven metal. Gold opened at Rs 58,045 per 10 grams on the Multi Commodity Exchange (MCX) and reached an intraday low of Rs 58,001. In the international market, prices hovered around $1,878.60 per troy ounce. Meanwhile, silver started at Rs 69,734 per kg, hit an intraday low of Rs 69,656 on the MCX, and was trading at approximately $22.14 per troy ounce in the international market.
Anuj Gupta, Head of Commodity and Currency at HDFC Securities, attributed the 0.54% increase in gold prices to the ongoing conflict between Israel and Hamas. He also pointed out that the dollar index is in correction mode after being in the overbought zone, which is providing support to gold. The dollar index is currently trading at 105.40 levels. Additionally, demand for gold is increasing as fund houses and central banks are shifting their investments from the dollar to gold. In the upcoming FOMC meeting, interest rates are expected to remain stable, further supporting the yellow metal.
Praveen Singh, Associate V.P., Fundamental Currencies, and Commodities at Sharekhan by BNP Paribas, noted that the demand for gold remains weak as total known global gold ETF holdings continue to see outflows. These holdings have reached their lowest level since February 2020. Key US economic data, such as ISM services, consumer spending, and job market indicators, remain positive. Furthermore, major central banks are likely to maintain a ‘higher for longer’ interest rate regime, which could dampen gold demand. Singh also pointed out that gold could be at risk if the US CPI inflation data, scheduled for release on October 12, doesn’t show soft figures.
Gold is expected to trade between $1870 to $1885 levels in the international market and between 57700 to 58300 levels on MCX. The short-term trend for gold looks positive, and traders are advised to consider buying on dips. The precious metal may test $1880 to $1885 levels internationally and 58100-58300 levels on MCX.
Amit Khare, Associate Vice President at GCL Broking, emphasized that gold and silver closed positively, with gold gaining 0.40% and silver rising by 0.77%. Khare suggested that bullion is making a bottom and that a short-covering rally is in progress. Traders were advised to consider new buy positions in gold and silver, with specific support and resistance levels for guidance. For December gold, the support levels are 57750/57500, and the resistance levels are 58000/58200. For December silver, the support levels are 69000/68000, and the resistance levels are 70000/71000.