Gold and silver prices today: Yellow metal rises sharply by 0.33% amid Middle East dispute

Gold opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 60,824 per 10 grams and hit an intraday low of Rs 60,822. In the international market, prices hovered around $1986.65 per troy ounce. Meanwhile, silver opened at Rs 71,799 per kg, hit an intraday low of Rs 71,715 on the MCX, and hovered around $22.99 per troy ounce in the international market. 

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Gold prices increased sharply by 0.33 per cent yesterday and closed at 60801 levels. The escalation between Israel and Hamas is supportive of safe-haven demand for the precious metals. The dollar index is trading at 106.70 levels, which works as a hurdle for gold.”

“FOMC is expected to keep interest rate stable in the upcoming meeting. Gold may trade between $1980 to $1995 levels and on MCX, it may trade between 60500 to 612000 levels. Silver may trade between 71200 and 72300 levels. Buy on dips is recommending for intraday perspective,” added Gupta.

Israel kept up its strikes on Hamas targets in Gaza as it prepared for a ground invasion, and world powers at the United Nations failed to secure plans to deliver critical humanitarian aid. 

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Yesterday, initial reports suggested that Israel was ready to wait for the Gaza invasion; however, soon, it was discovered that Israel was preparing its troops for ground invasion. The dollar and benchmark U.S. 10-year Treasury yields climbed after data indicated that new-home sales surged to a 19-month high in September, affirming market expectations of prolonged high rates heading into 2024. 

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Gold prices inched higher on the back of the Middle-East dispute, which kept investors worried, with bullion standing firm despite a stronger U.S. dollar and bonds yields."

"As we near the next Fed meeting, it is also important to monitor Fed Governor's and other officials' comments. Investors await the U.S. GDP numbers for the third quarter later in the day and the PCE price index on Friday ahead of the Federal Reserve's rate decision next week. Focus will also be on the ECB interest rate decision where the expectation is that the central bank could keep the rate unchanged, snapping a 15-month hike streak," added Modi.

Amit Khare, Associate Vice President at GCL Broking, said, "December Gold closed at 60801 (0.44%), and December Silver closed at 71776 (-0.01%), as per daily chart Bullions looking strong. 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 60500/60200 and Resistance 61000/61200. Silver December Support 71400/70500 and Resistance 72300/73000."