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Business News/ Markets / Commodities/  Gold prices jump after escalation in Iran-Israel tensions. Should you buy in this rally?
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Gold prices jump after escalation in Iran-Israel tensions. Should you buy in this rally?

Gold rates today are in uptrend after reports of Israeli air strikes in Iran, say experts

Gold rate today in the international market is in the $2,360 to $2,420 per troy ounce range whereas MCX gold rate today is in ₹72,200 to ₹73,500 per 10 gm range, say experts. (Photo: Mint Print)Premium
Gold rate today in the international market is in the $2,360 to $2,420 per troy ounce range whereas MCX gold rate today is in 72,200 to 73,500 per 10 gm range, say experts. (Photo: Mint Print)

Gold rate today: On account of rising geo-political tension in the Middle East region, gold prices witnessed buying interest during the early morning session on Friday. Gold price on the Multi Commodity Exchange (MCX) opened higher and went on to touch an intraday high of 72,869 per 10 gm. In the international market, spot gold price also showed upside movement and came close to $2,400 per troy ounce levels in early morning deals. Spot gold price is currently oscillating around $2,395 levels.

Israel-Iran issue in focus

On why gold rates are in an uptrend today, Anuj Gupta, Head of Commodity & Currency at HDFC Securities said, “Gold prices are surging after an escalation in the geopolitical tension in the Middle East. The Middle East tension has risen after reports of Israel's “missile attack" in an Iranian city, which has fueled the Iran-Israel war."

On other factors that are fueling gold prices today, Kotak Securities report said, "COMEX Gold prices edged higher amid dollar weakness, improved demand from Chinese buyers and central banks. Fed Chair Jerome Powell flagging a likely delay in the much-anticipated pivot after a series of surprisingly high inflation readings. Swaps markets now see just a 16% chance of a reduction in borrowing costs in June, down from 57% at the end of last month."

Gold price outlook

Advising a ‘buy-on-dips’ strategy regarding gold and silver prices, Anuj Gupta of HDFC Securities said, “Overall outlook for gold and silver prices are positive. Any dip should be seen as a buying opportunity. In the international market, gold prices are in the $2,360 to $2,420 per troy ounce range. On breaching the upper hurdle, gold prices may go up to $2,450 per troy ounce levels."

Anuj Gupta maintained that the MCX gold rate today has immediate support placed at 72,200 per 10 gm levels whereas it is facing resistance at 73,500 per 10 gm level. On breaching this resistance, MCX gold rates may go up to 74,250 to 74,300 per 10 gm levels in the near term.

Israel-Iran war news

Israel launched missile strikes against Iran during early hours on Friday morning (local time), ABC News reported citing a senior US official. The report came shortly after local sources reported blasts in Isfahan region in Central Iran.

“Iran's Fars news agency reported three explosions were heard near an army base in the central city of Isfahan. An Iranian official told Reuters there was no missile attack and the explosions were the result of the activation of Iran's air defense systems," reported Reuters.

Iran's air defence systems were activated in several locations after multiple explosions were heard close to the airport and an army base in the Iranian city of Isfahan, state media reported early Friday morning.

The missile launches come after Iran launched an offensive on targets around Israel on Saturday last week, according to Israeli military authorities, in which the nation fired a barrage of over 300 unmanned drones and missiles.

(With inputs from ANI)

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 making any investment decisions.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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Published: 19 Apr 2024, 09:16 AM IST
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