Gold opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 60,478 per 10 grams and hit an intraday low of Rs 60,436. In the international market, prices hovered around $1,972.60 per troy ounce. Meanwhile, silver opened at Rs 71,629 per kg, hit an intraday low of Rs 71,588 on the MCX, and hovered around $22.95 per troy ounce in the international market.
Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, "Gold prices corrected sharply by 0.23% and closed at 60599 levels. A ceasefire between Israel and Hamas is putting pressure on the precious metals. The dollar index is trading at 106.25 levels, which again works as a hurdle for the speed of gold."
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Dollar index inched higher against its major crosses in yesterday's session, trading around 106.30; while US Yields have slightly eased off from its recent peak of 5% amid concerns regarding the economic impact of higher borrowing costs. However, gold prices traded steady after some volatility in the past few sessions on the back of firm Dollar Index, slight ease off in US Yields, and escalating dispute between Israel and Hamas."
Investors are keeping a close watch on the conflict in the Middle East as world leaders pushed for either a pause or ceasefire in the fight between Israel and Hamas so that humanitarian aid could be delivered to besieged Palestinian civilians weighing on safe-haven assets.
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"There still are sounds of sirens with Iran and other neighbouring countries also getting in the headlines; however, it will be important to see how other major economies react to this dispute. U.S. business activity ticked higher in October, while output in the euro zone took a surprise turn for the worse. Investors this week will keep their eyes on the advance Q3 U.S. GDP, Core PCE price index, Core durables goods orders and a few housing numbers," said Modi.
Amit Khare, Associate Vice President at GCL Broking, said, "December Gold closed at 60725(-0.07%) and December Silver closed at 71840(-0.33%), as per daily chart Bullions looking strong. Traders are advised to make fresh buy positions in Gold and Silver near given support level one with the stop loss of support level two and book near given resistance levels: Gold December Support 60300/60000 and Resistance 60700/61000. Silver December Support 71400/70500 and Resistance 72300/73000."