Gold and silver prices today: Yellow metal range-bound after war spike. Check details

Gold opened at Rs 59,500 per 10 grams on the Multi Commodity Exchange (MCX) on Wednesday, dipping to an intraday low of Rs 59,480. Internationally, gold prices hovered around $1,938.10 per troy ounce. Meanwhile, silver opened at Rs 72,100 per kg, hit an intraday low of Rs 72,000 on the MCX, and hovered around $23.13 per troy ounce in the international market.  

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, says, “Gold prices closed flat up by 0.09 per cent and closed at 59218 levels. Again, the escalation of war is supporting bullion prices. Safe haven demand is also supportive of prices. Positive GDP numbers in China, too, is supportive for base metals and industrial metals.” 

Praveen Singh, Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Yesterday, spot gold closed with a small gain of 0.16 per cent at $1922 as traders kept the metal bid ahead of Biden’s trip to Israel.” 

Gold price rose as the escalation between Israel and Gaza continued to gain momentum, keeping the safe-haven asset in demand among nervous investors despite robust U.S. economic data and a high-rate scenario. 

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “About 500 Palestinians were killed in a blast at a Gaza City hospital that Israeli and Palestinian officials blamed on each other igniting protests in the West Bank and around the Middle East. Gold has surged by around $100 since the conflict began, despite recent robust US economic data fuelling bets of higher-for-longer interest rates, which tend to lift the dollar and bond yields which currently are trading above 4.8 per cent and 106 mark.” 

Production at U.S. factories and retail sales increased more than expected in September, suggesting the economy ended Q3 strongly. 

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“Fed officials continue to take a cautious stance; Richmond Fed chief Barkin said that higher long-term borrowing costs are putting downward pressure on demand. Focus now shifts to inflation data from E.U., U.K., housing number from U.S. and comments from fed officials,” said Modi. 

Deveya Gaglani, Research Analyst - Commodities, Axis Securities, said, “Gold prices have been on a roll for the past week. Prices have gained more than 5 per cent in the last week due to the war between Hamas and Israel, prompting safe-haven buying in bullion.” 

Additionally, the 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. 

“Prices are up today by more than 0.7 per cent in the domestic market. It is trading around 59633 as tension between Hamas and Israel has increased after a bomb attack in Gaza, which may derail the de-escalation talks, benefiting gold prices. Technically, it is trading above 20 and 60 EMA on the daily chart, which is a positive sign for prices. A weekly close above the 60000 level may push prices higher towards the 61500 level,” said Gaglani.