Gold is commonly seen as a secure investment during periods of political unrest, economic unpredictability, or financial market turbulence.
Gold prices surged in the morning trading session on Wednesday, October 18, reflecting positive developments in global markets, as concerns heightened over the ongoing Israel-Hamas conflict.
“Gold prices rose by 1% to reach their highest point in a month on Wednesday, driven by heightened fears of the regional conflict intensifying after a deadly incident in Gaza, sustaining demand for the safe-haven asset,” according to a Reuters report.
The Reuters report also mentioned, “Gold prices have surged by more than $100 since the conflict began, despite recent strong economic data in the United States that has prompted expectations of prolonged higher interest rates, which typically strengthen the dollar and bond yields.”
Gold is commonly viewed as a safe-haven asset during times of geopolitical instability, economic unpredictability, or turbulence in financial markets.
Furthermore, gold serves as a hedge against inflation. As currencies lose value due to rising inflation, investors often turn to gold to safeguard their investments, leading to increased demand and driving up gold prices.
Around 10 am, the MCX Gold for December 5 contract was trading 0.66% higher at ₹59,608 per 10 grams.
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What should be your strategy for gold today?
Manoj Kumar Jain of Prithvifinmart Commodity Research anticipates a week of volatility for both gold and silver. He believes that gold prices may maintain around $1,884 per troy ounce, while silver prices could also remain around $21.80 per troy ounce. Jain advises adopting a strategy of purchasing during price declines in both gold and silver.
According to Jain, gold has a support level between $1,922 and $1,910, with resistance levels at $1,945 to $1,958 per troy ounce. As for silver, the support range is between $22.84 and $22.55, while resistance falls in the range of $23.20 to $23.55 per troy ounce. Jain recommends buying on dips in gold and silver, with the aim of reaching ₹60,000 for gold and ₹72,800 for silver in the short term.
SMC Global Securities, a brokerage firm, expects gold to trade in the ₹59,000 to ₹59,500 range and silver in the ₹70,800 to ₹71,600 range, with a sideways to bullish bias.
IIFL Securities, another brokerage firm, notes that gold’s support stands at ₹58,980, and a drop below that level could test ₹58,750. Resistance is expected at ₹59,460, and a breakout could push prices to ₹59,710.
Rahul Kalantri, VP of commodities at Mehta Equities, also anticipates volatility for gold and silver in the current session. For gold, support is seen at $1,928 to $1,914, with resistance at $1,954 to $1,967. In terms of the Indian rupee, gold has support levels at ₹59,110 and ₹58,840, with resistance at ₹59,650 and ₹59,840. For silver, support is found at ₹70,650 to ₹69,910, and resistance at ₹72,280 to ₹72,850.
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