Gold price registers biggest gain on MCX since March 2023. Buy, sell opr hold?
Gold rate today: On account of escalating tension in Israel Palestine conflict, gold price on Multi Commodity Exchange (MCX) registered an intraday rise of ₹1497 per 10 gm, which is its biggest rise on the bourse since 13th March 2023. On 13th March 2023, yellow metal price had surged ₹1,492 per 10 gm on MCX. Gold future contract for December expiry on MCX ended 2.58 per cent higher at ₹59,415 per 10 gm levels on Friday. In international market, spot gold price finished at $1,932.40 per ounce levels. logging intraday gain of over $63 dollar per ounce or 3.41 per cent rise on Friday.
Silver price also witnessed sharp upside movement on last session of the week gone by. Silver rates on MCX ended ₹2,294 per kg or 3.32 per cent higher at ₹71,367 per kg levels. In international market, silver price ended over 4 per cent higher at 22.70 per ounce levels.
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According to commodity market experts, escalating tension in Israel war has led to sharp rise in crude oil prices. They said that market is full of speculations and uncertainty as US dollar index also gained and ended at 106.67 levels. However, they maintained that US is dropping hint to enter the Israel Hamas war, which would impact the upcoming US economic data and hence market has gone bullish on gold as they are expecting the yellow metal becuase they have started to look at gold as an ‘investors haven’ in near term.
Israel Palestine conflict in focus
Speaking on the reasons that fueled gold price to register its biggest gain in last seven months, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “US pro-actie support to Israel in current Israel Palestine conflict has escalated the tension in Middle East region. This may lead to more problems as OPEC countries may decided to cut down crude oil production if they decide to lend support to Palestine. This has led to rise in crude oil price to around $90 per barrel levels again.”
Anuj Gupta of HDFC Securities went on to add that rising crude oil prices may lead to inflation pressure and this won’t be asy for the US Fed to contain by just increasing the interest rates. Hence, gold prices surged despite US dollar index surged to 106.67 levels. He said that focus has now shifted towards Israel news and crude oil prices.
Edward Moya, Senior Market Analyst at OANDA said, “Investors are fleeing to safe havens as the risks of Middle East tensions grow,” adding, “If the geopolitical situation gets gloomier, there is a good chance that gold prices could go to the $2,000 levels this year. We have come from mid-$1,800s to mid-$1,900s, $2,000 is just a fraction of that.”
Important levels for gold price
Anuj Gupta of HDFC Securities said that gold price in international market has now immediate support placed at $1,910 per ounce levels whereas it has crucial support placed at $1,880 levels. On the upper side, $1,950 and $1,980 are the immediate targets.
“On MCX, gold price has immediate support placed at ₹58,800 levels whereas its crucial support is placed at ₹58,300 per 10 gm levels. On the upper side, gold price is facing resistance at ₹59,800 levels. On breaching this hurdle, the yellow metal price on MCX may go up to ₹60,500 per 10 gm levels,” said Anuj Gupta.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 14 Oct 2023, 07:19 AM IST
