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Business News/ Markets / Commodities/  Gold rate today under pressure on ease in Israel-Hamas war. Time for Diwali buying?
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Gold rate today under pressure on ease in Israel-Hamas war. Time for Diwali buying?

MCX gold rate today has immediate support placed at ₹60,000 per 10 gm levels whereas it has crucial support placed at ₹59,000 per 10 gm levels, say experts

Gold price today is in $1,960 to $1,980 per ounce range whereas it has crucial support placed at $1,930 per ounce levels, say experts. (PTI)Premium
Gold price today is in $1,960 to $1,980 per ounce range whereas it has crucial support placed at $1,930 per ounce levels, say experts. (PTI)

Gold rate today: On account of ease in Israel-Hamas war after Israel Prime Minister Benjamin Netanyahu and US President Joe Biden agreed to continue humanitarian aid in Gaza. However, Israel war on Hamas is still on and the Israel Palestine conflict has entered 17th day.

Gold price on Multi Commodity Exchange (MCX) opened 60,400 per 10 gm levels. But, the MCX gold rate caught buyers' support and surged to intraday high of 60,595 per 10 gm levels. In international market, gold price today is oscillating around $1,974 per ounce levels.

Likewise, silver rate today opened lower at 72,645 per kg levels and went on to hit intraday low of 72,511 per kg levels. However, the precious white metal soon garnered support at intraday low and surged to intraday high of 72,837 levels within few minutes. In international market, silver price is oscillating around $23.25 per ounce levels.

What put gold price under pressure?

On reasons that put gold price under pressure, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Gold price today is under pressure as tension in Middle East has cooled after US President Joe Biden and Israle Prime Minister Benjamin Netanyahu agreed to continue humanitarian aid in Gaza. Market was expect disruption in this supply after strong bombing by Israeli troops in Gaza last night. However, one must remember that Israel-Hamas war is still on and the humanitarian aid was available earlier as well. US and Israel have just extended that supply line and nothing more." He said that rise in US dollar index has also put pressure on the yellow metal and other precious metal prices.

Anuj Gupta said that fast approaching Diwali 2023 and extension of Israel-Hamas war on 17th day is going to provide support to the yellow metal at support levels and advised ‘buy on dips’ strategy for Diwali shoppers.

Other triggers for gold price

Expecting festival buying to lend support to rebound in gold and silver prices, Somasundaram PR, Regional CEO, World Gold Council — India said, “While gold’s safe haven attributes always come to the fore during periods of anxiety, it is also true that measures to counter inflation have been successful near term which acts as a tailwind."

The WGC office bearer went on to add that a variety of other factors are also at play such as positive net interest scenario but a fall in domestic savings, stock market volatility amidst a highly optimistic domestic economic sentiment, mixed signals on rural demand from FMCG but significant footfalls on jewellery B2B events in recent times and rising GST collections pointing to better compliance and growth, all of which make this festive quarter for gold look very positive but with significant challenges. Anecdotal feedback from retailers suggests good pickup in gold jewellery demand around Dusshera festival.

Important levels for gold, silver prices

Advising buy on dips for gold investors as Diwali festival is fast approaching, Anuj Gupta of HDFC Securities said, "MCX gold rates have immediate support placed at 60,000 per 10 gm levels whereas it has crucial support now placed at 59,000 levels. In international market, gold price today has immediate support at $1,960 per ounce levels whereas it has crucial support placed at $1,935 per ounce levels."

On important levels in regard to silver rate today, Anuj Gupta said, "Silver price today looks positive and it is facing resistance at 75,000 per kg levels whereas it is facing crucial resistance at 78,000 per kg levels. In international market, it is facing hurdle at $24.50 per ounce levels."

Anuj Gupta of HDFC Securities maintained that festival season in India is on and Diwali 2023 is fast approaching, which is expected to spurt demand for gold and silver metal.

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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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: 23 Oct 2023, 11:29 AM IST
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