Israel-Hamas war: Gold price extends rally despite rise in US Treasurey yield and US dollar rate | Mint
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Business News/ Markets / Commodities/  Israel-Hamas war: Gold price extends rally despite rise in US Treasurey yield and US dollar rate
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Israel-Hamas war: Gold price extends rally despite rise in US Treasurey yield and US dollar rate

Gold rate today is in uptrend due to uncertainties associated with the Israel-Hamas, say commodity market experts

MCX gold rate today has immediate support placed ₹60,300 per 10 gm levels whereas it is facing immediate hurdle at ₹61,200 levels, say experts.Premium
MCX gold rate today has immediate support placed 60,300 per 10 gm levels whereas it is facing immediate hurdle at 61,200 levels, say experts.

Gold rate today: On account of Israel-Hamas war entering 20th day and rising tension in the Middle East fueling geopolitical uncertaities, gold price today extended its rally during morning deals. Gold future contract on Multi Commodity Exchange (MCX) for December expiry opened at 60,824 per 10 gm levels and went on to hit intraday high of 60,968 per 10 gm levels within few minutes of commodity market's opening bell today. In international market, spot gold price is oscillating around $1,988 per ounce levels.

Likewise, silver rate today on MCX opened higher at 71,799 per kg levels and went on to hit intraday high of 71,896 per kg levels during opening bell today. In international market, silver price today is oscillating around $22.95 per ounce levels.

It is interesting to see that gold and silver prices have risen despite rise in US Treasury yields and US dollar. During morning deals in Asian stock market, 10-year US bond yiled climbed 0.17 per cent and touched 4.962 levels. US dollar index touched two week high of 106.76 levels.

Israle-Hamas war enters 20th day

On why gold and silver prices have been surging despite rise in US dollar rate and US Treasury yields, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “MCX gold rate is rising due to uncertainties associated with the Israel-Hamas war. This geopolitical tension has entered 20th day after its outbreak on 7th October 2023 and the Middle East tension is yet to find any truce or any conclusive outcome." 

Anuj Gupta went on to add that market is expecting that rising US treasury yields and US dollar rates are temporary as US Fed may not increase interest rates in its upcoming November meeting.

US Fed rate hike in focus

Echoing with Anuj Gupta's views, Deveya Gaglani, Research Analyst - Commodities, Axis Securities said, 'The US Fed has changed its stance from hawkish to dovish, and the probability of a rate hike decrease in November is a silver lining for Gold prices."

Axis Securities expert expected further upside in gold and silver prices as tension between Hamas and Israel has increased after a bomb attack in Gaza, which may derail the de-escalation talks, benefiting gold prices.

Important levels to watch

Highlighting the pivote levels in regad to gold price today, Anuj Gupta of HDFC Securities said, "Gold rate today has immediate hurdle placed at $1,900 levels whereas it has immediate support at $1,960 per ounce levels. Likewise, MCX gold rate today has immediate hurdle placed at 61,200 whereas it has support placed at 60,300 per 10 gm levels.

“Silver rate today has immediate support placed at 71,000 per kg levels wheras it is acing hurdle at 73,000 per kg levels. In international market, silver rate today is immediate support placed at $22.50 per ounce levels while is is tacing hudele at $23.50 per ounce 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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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Commodity News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
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Published: 26 Oct 2023, 09:58 AM IST
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