Gold rate today skids as US, Egypt, Israel announce ceasefire in south Gaza

Gold rate today: Amid ease in Middle East tension after announcement of ceasefire in south Gaza by US, Egypt and Israel, gold price rally took a pause during morning deals and opened lower at ₹59,209 per 10 gm levels. Gold price drifted further down after weak opening and hit intraday low of ₹58,944 levels. In international market, gold price is sustaining above $1,900 per ounce levels as well.

According to commodity market experts, gold prices are under pressure today as tension in Middle East has eased after announcement of ceasefire in south Gaza by US, Egypt and Israel. They said that recent rise in gold prices were mainly due to Israel-Hamas war. They said that gold price on MCX has immediate support at ₹58,750 to ₹58,700 levels whereas it is facing hurdle at ₹59,500 levels. On breaching the lower levels, gold price will find support at ₹58,250 to ₹58,300 levels on MCX and at $1,880 levels in international market.

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Israel-Hamas war in focus

On reasons that fueled gold price recently, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “Concerns regarding the spread of the Israel-Palestine conflict have triggered the sharp spike in Brent crude to above $90 and safe-haven buying has pushed gold to above $1900. The anxiety of the market is reflected in the CBOE VIX spiking above 19. From the geopolitical perspective, we are in uncharted territory and, therefore, prudence demands that investors remain cautious.”

Important levels to watch

On reasons for dip in gold price today, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Gold prices are under pressure today as there is ease in Middle East tension after announcement of ceasefire in South Gaza by the US, Egypt and Israel.”

HDFC Securities expert went on to add that broader range of gold price today in international market is $1,900 to $1,980 levels whereas on MCX, broader range is ₹58,700 to ₹59,500 per 10 gm range. He said that MCX gold price has immediate support at ₹58,750 to ₹58,500 whereas it is facing hurdle at ₹59,800 per 10 gm. 

"On breaching ₹58,700 support on MCX, the yellow metal may down towards ₹58,300 per 10 gm levels whereas spot gold price may touch $1,880 per ounce levels after breaching its support placed at $1,900 per ouonce levels," said Anuj Gupta.

Gold price outlook

Advising ‘strict stop loss’ strategy in regard to gold price today, Anuj gupta said, “One should maintain strict stop loss at lower levels as overall outlook for gold and silver has gone cautious after ease in Israel Palestine conflict.”

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.