Silver and gold prices have increased as the Israeli-Palestinian conflict intensifies. Possibility to purchase

 Silver and gold prices have increased as the Israeli-Palestinian conflict intensifies. Possibility to purchase

Due to the increased uncertainty after the Israel-Palestine conflict, gold prices are now seeing considerable purchasing activity. Within a few minutes of the commodities market's opening bell today, the gold price on the Multi commodities Exchange (MCX) for the December 2023 expiration contract started higher at 57,000 per 10 gm levels and reached an intraday high of 57,400 levels. The price of gold is fluctuating around the $1,850 per ounce range on the spot market.

Similar to Monday's gold rate, silver's rate today on the MCX began higher at 68,740 per kilogram before reaching an intraday high of 68,980 per kilogram just after the opening bell. During Monday trades, the price of silver is fluctuating in the international market around $21.80 per ounce levels.

Focus on the Israel-Palestine conflict

Anuj Gupta, Head of Commodity & Currency at HDFC Securities, commented on what has driven up gold and silver prices today, saying, "Gold and silver prices are increasing today owing to uncertainty after the geo-political tension in Middle East. Investors have turned their focus to gold since the Israel conflict started because they anticipate a sharp sell-off of other assets. People are predicted to move their money from other assets like shares, mutual funds, bonds, etc. to bullions in such a situation. Israel-related news will thus serve as a significant catalyst for the price of yellow and white metals in the near future.

Due to the Israel-Palestine conflict, the market drops by around 1%, and investors lose $4 lakh crore.

other catalysts for the price of gold

Regarding triggers other than the conflict between Israel and Palestine, Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, stated that this week's investors will be paying close attention to the US PPI (September), FOMC minutes, CPI (September), University of Michigan consumer sentiment, and inflation expectations. Out of Europe, the CPI, industrial production, Sentix investor sentiment, and monthly GDP for the UK will all be watched closely. The trader's entertainment will be enhanced by statistics on China's trade balance and CPI.

USD to pay attention

Anuj Gupta of HDFC Securities continued by saying that the US dollar has been experiencing a sell-off and that the dollat index has fallen below 106 levels. Once it breaks through its immediate support level at 105 levels, the index is predicted to go below 103 levels. 

Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors, commented on the factors that caused the US dollar to weaken against the major world currencies, stating that "a robust US jobs report for September, released last week, heightened expectations of another interest rate hike by the US Fed at its November meeting. Unexpectedly, the US economy created 336,000 new jobs in September, more than twice the predicted 170,000. A decrease in hourly wages in September, however, showed a minor reduction in wage pressures, which caused the dollar index to drop and provided some support for the precious metal.

essential levels to consider

Anuj Gupta responded to a question regarding the key levels to consider when taking positions in gold and silver by saying, "In the international market, gold rate today has immediate support around $1,835 levels while it is confronting obstacle at $1,880 per ounce levels. The gold price on the MCX is now struggling around 57,800 and 58,300 per 10 gm levels.

Anuj Gupta gave the following advice to investors in gold and silver: "Those who have positions in gold are recommended to keep stop loss at 56,800 levels for near term objectives of 57,800 and 58,300 levels. In the short run, it is anticipated that the silver rate would increase to levels of 71,000 and 74,000 per kg, with immediate support set at 66,000. He recommended investors in gold and silver to stick with their buy on dips approach as long as the Israel-Palestine crisis continues.