Gold and silver prices today: Yellow metal rises 0.54% amid war between Israel and Hamas

Gold opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 58,045 per 10 grams and hit an intraday low of Rs 58,001. In the international market, prices hovered around $1,878.60 per troy ounce. Meanwhile, silver opened at Rs 69,734 per kg, hit an intraday low of Rs 69,656 on the MCX, and hovered around $22.14 per troy ounce in the international market.   

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said gold prices increased by 0.54 per cent yesterday and closed at 57940 levels on the back of the war between Israel and Hamas. “The dollar index is also in correction from the overbought zone, which signalling support for gold. The dollar index is trading at 105.40 levels. Fund houses and central banks demand is shifting from Dollar to Gold. FOMC is expected to keep interest rate stable in the upcoming meeting.” 

Praveen Singh,  Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said demand for the metal is anaemic as total known global gold ETF holdings continue to see outflows. Total known global gold ETF holdings have fallen to the lowest level since February 2020. Key US data like ISM services, consumer spending, JOLTs job openings, job additions, remain encouraging. Even if the global interest rates seem to be peaking, major central banks are going to stick to a ‘higher for longer’ rate regime, which will hurt the demand for gold. If the US CPI inflation data to be released on October 12 doesn’t come out to be soft, gold will be at risk.

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“The yellow metal may grind lower to $1775 eventually.  Gold will have a sustainable basis to rise when the US economic indicators start showing significant deterioration; high rates lead to some credit event risk, or other countries getting involved in the Mideast conflict,” said Singh.   

Gold may trade between $1870 to $1885 levels, and on MCX, it may trade between 57700 to 58300 levels. Technically, the short-term Trend looks positive. Today, traders can buy gold on dips. It may test $1880 to $1885 levels; on MCX, it may test 58100-58300 levels. 

Amit Khare, Associate Vice President at GCL Broking, said, “MCX Gold and Silver gave a positive closing yesterday. December Gold closed at 57940 (0.40 per cent) and December Silver closed at 69426(0.77 per cent). As per the daily chart, Bullions are making bottom. We can see a good short covering rally in bullions. Traders are advised to make fresh buy positions in Gold and Silver near the given support level one with the stop loss of support level two and book near the given resistance levels: Gold December Support 57750/57500 and Resistance 58000/58200. Silver December Support 69000/68000 and Resistance 70000/71000.”