Gold and silver prices today: Yellow metal edges up, hovers near 2-month high amid Middle East turmoil

Gold opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 59,720 per 10 grams and hit an intraday low of Rs 59,720. In the international market, prices hovered around $1,946.60 per troy ounce. Meanwhile, silver opened at Rs 71,801 per kg, hit an intraday low of Rs 71,525 on the MCX, and hovered around $22.9 per troy ounce in the international market. 

“Yesterday, spot gold closed with a gain of 1.30 per cent at $1937. The gains came on further escalation of the Middle East conflict as bombing of a hospital in Gaza that resulted in a huge death toll drew sharp reactions from leaders and people across the world. US President Joe Biden, who’s on a tour of Israel, put the blame of the bombing on ‘the other party’ as he cited the US intelligence that Israel was not involved in that unfortunate incident. The US president siding with Israel is not going down well with the Arab countries, thus geopolitical angst and tensions continue to rise,” said Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas. 

Gold prices edged higher to hover near a three-month high as escalating Middle East turmoil lifted demand for the safe-haven asset, while investors looked forward to US Federal Reserve Chair Jerome Powell’s speech due later in the day. 

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Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Israel loosened its grip and allowed basic aid in Gaza after President Biden's visit yesterday, even though the attacks are on, this gave market some hope that the dispute might end soon. Few fed policymakers were also active yesterday. Fed official Waller mentioned that he is looking for one more rate hike, however it will be totally data dependent. US dollar index is trading firmed above 106 mark, while US 10Y yields continues to rally marking levels of 4.9% and higher. On data front, US housing numbers were reported better than expectations weighing on bullions, focus today will be weekly jobless claims and [Philadelphia] Fed manufacturing index.” 

“Although dollar index is trading at 106.05 levels which is again work as a hurdle for a speed of gold. Overall, the technical trend of gold is to up. War situation is still on which may also give support to gold prices further,” said Anuj Gupta, Head of Commodity and Currency at HDFC Securities. 

Amit Khare, Associate Vice President at GCL Broking, said, “MCX Gold and Silver gave positive closing yesterday, December Gold closed at 60064 (1.43 per cent) and December Silver closed at 71860 (0.41 per cent), As per daily chart Bullions looking positive today, We can see some upside movement in coming future, Momentum Indicator RSI also indicating the same, So 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 59800/59500 and Resistance 60200/60400. Silver December Support 71400/70400 and Resistance 72300/73000.”