Gold price today: Rates jump on Israel-Hamas war escalation fears; what should be your strategy for bullion today? | Mint
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Business News/ Markets / Commodities/  Gold price today: Rates jump on Israel-Hamas war escalation fears; what should be your strategy for bullion today?
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Gold price today: Rates jump on Israel-Hamas war escalation fears; what should be your strategy for bullion today?

Gold is often considered a safe-haven asset in times of geopolitical turmoil, economic uncertainty, or financial market instability.

Gold is often considered a safe-haven asset in times of geopolitical turmoil. photo:pradeep gaur/mint (Mint)Premium
Gold is often considered a safe-haven asset in times of geopolitical turmoil. photo:pradeep gaur/mint (Mint)

Gold prices witnessed sharp gains in the morning trade in the domestic futures market on Wednesday, October 18, mirroring positive trends in global markets, amid concerns over an escalation in the Israel-Hamas war.

"Gold prices climbed 1 per cent to their highest in a month on Wednesday after a deadly blast in Gaza fuelled fears about the regional conflict escalating, keeping the safe-haven asset in demand," reported Reuters.

"Gold prices have surged over $100 since the conflict began, despite recent robust US economic data fuelling bets of higher-for-longer interest rates, which tend to lift the dollar and bond yields," the Reuters report added.

Gold is often considered a safe-haven asset in times of geopolitical turmoil, economic uncertainty, or financial market instability.

Also, gold is often seen as a hedge against inflation. When the value of currencies falls due to rising inflation, investors tend to buy gold to preserve the value of their investment which increases the demand for gold driving its price higher.

MCX Gold for December 5 contract traded 0.66 per cent higher at 59,608 per 10 grams around 10 am.

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What should be your strategy for gold today?

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver to remain volatile this week. He believes gold prices could hold $1,884 per troy ounce and silver prices could also hold $21.80 per troy ounce levels. Jain suggests buying on dips strategy in gold and silver.

"Gold has support at $1,922-1,910, while resistance at $1,945-1,958 per troy ounce. Silver has support at $22.84-22.55, while resistance is at $23.20-23.55 per troy ounce," said Jain.

"On the MCX, gold has support at 59,000- 58,880 and resistance at 59,400- 59,550 while silver has support at 71,000- 70,550 and resistance at 72,000- 72,800. We suggest buying on dips in gold and silver targeting gold for 60,000 and silver for 72,8000 in the very short term," said Jain.

Also Read: Oil ticks higher ahead of Biden's Israel trip as traders await pause on escalation of war; Brent at $90/bbl

Brokerage firm SMC Global Securities expects gold may trade in the range of 59,000- 59,500, and silver may trade in the range of 70,800- 71,600, with sideways to bullish bias.

According to the brokerage firm IIFL Securities, gold has support at 58,980, and a drop below that could test 58,750. Resistance is expected at 59,460, and a breakout could push prices to 59,710, IIFL Securities said.

Rahul Kalantri, VP of commodities at Mehta Equities expects gold and silver to remain volatile in today's session.

"Gold has support at $1,928-$1,914, with resistance at $1,954-$1,967. Silver's support levels are $22.96-$22.78, and resistance is at $23.30-$23.44. In terms of the Indian rupee, gold has support at 59,110 and 58,840, with resistance at 59,650 and 59,840. Silver has support at 70,650- 69,910, and resistance at 72,280- 72,850," said Kalantri.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 18 Oct 2023, 10:18 AM IST
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