Today's gold price: With rates rising due to the Israel-Hamas conflict, what should your approach to gold be?

 Today's gold price: With rates rising due to the Israel-Hamas conflict, what should your approach to gold be?

Following encouraging global indications, gold prices increased during the morning trade on the domestic futures market. The Israel-Hamas conflict's uncertainty caused gold prices to rise on global markets. Furthermore, the dollar and bond yields were affected by dovish comments from senior US Fed officials, which helped the price of gold.

Geopolitical tensions are supporting gold. According to a report by Reuters, "gold rose about 1.6 per cent on Monday, its biggest a single-day jump in five months, as military clashes pitting Israel and Palestinian Islamist group Hamas boosted buyers of safe-haven assets."

When there is geopolitical unrest, economic uncertainty, or financial market turbulence, gold is frequently regarded as a safe-haven asset.

Gold prices are anticipated to increase further as a result of the Israel-Hamas conflict. Additionally, interest rate changes affect gold prices. Low interest rates reduce the opportunity cost of owning gold, which increases the appeal of gold. Bonds and other interest-bearing investments become increasingly desirable when interest rates rise.

In other words, gold is a desirable safe-haven asset class when the economy is uncertain, but it is less desirable when interest rates are rising because the yellow metal pays no interest.

Around 10:15 am, MCX Gold prices were 0.25 percent higher at 57,716 for 10 grams.

What gold-related tactics should you employ today?

The continuing Israel-Hamas conflict is anticipated to benefit gold. Mint compiled professional opinions on the prospects for gold. They stated the following:

At Sharekhan by BNP Paribas, Associate Vice President of Fundamental Currencies and Commodities, Praveen Singh

Due to the Israel-Hamas conflict, spot gold increased on a demand for safe haven assets. In addition to geopolitical factors, dovish Fedspeak also benefited the metal.

Market participants are intently monitoring the developments in the Middle East, particularly the potential for other regional nations like Iran to join the conflict. Since the US CPI inflation data is scheduled to be issued this week, Friday's nonfarm payroll statistics, which fell short on hourly wages and unemployment rate counts, have continued to serve as an underlying support.

Following a sharp sell-off, gold is already recovering; as a result, the metal may rise even higher in the wake of the Middle East war and anticipated US CPI inflation data. In the days leading up to the release of the US CPI inflation statistics, the US Dollar index and bond yields may continue to weaken, supporting the demand for commodities. Gold is supported between $1,850 and $1,830. At $1,885, there is resistance.

Executive Director and Chief Advisor at Acme Investment Advisors Sugandha Sachdeva

Gold has once again come under the limelight as a refuge of stability as a result of the geopolitical unrest surrounding Israel and Hamas. The enduring appeal of gold is providing comfort to investors. Because gold has historically been a haven during times of unrest, the uncertainty caused by ongoing geopolitical unrest has rekindled interest in the precious metal.

This pattern is reminiscent of similar events, such as the rise in gold prices during the 2022 Russia-Ukraine conflict and the earlier this year banking crisis. If the current crisis were to worsen, it might increase interest in gold as a safe haven for preserving wealth.

Additionally, it looks that the precious metal has been oversold, providing potential favorable entry points for buyers of gold for their portfolios.

A crucial support level for the domestic markets is at 56,100 per 10 gms, which corresponds to the $1,800–1,810 per ounce area for the foreign markets. 

A gradual increase in the price of the precious metal may be seen if this support keeps prices cushioned. However, for gold prices to start moving much higher, they must remain above the $1,880/ounce mark.

Gold prices recovered from the low of $56,000 last week as prices were trading in an undervalued zone and geopolitical tensions generated a new wave of global risk aversion, aiding the safe-haven gold price to rise, according to Prithviraj Kothari, who MD and CEO of RiddiSiddhi Bullions constrained and President of Indian Bullion Gems and Jewelry Association.

It appears that this momentum from current levels of 57,500 is likely to last at least to the following resistance of 58,000 and 58,500 in the short run. Nearly 68,000 pounds can be spent on silver, with targets of 70,000 and 72,000 pounds in the near future.

Prithvifinmart Commodity Research's Manoj Kumar Jain

We anticipate that gold and silver will continue to exhibit strength during today's session, and any price decrease could represent a buying opportunity in precious metals.

Support and resistance levels for gold per troy ounce are $1,850-1,834 and $1,878-1,894, respectively. Support for silver per troy ounce is at $21.74–21.55, while opposition is at $22.20–22.55.

Silver has supporting at 68,650-68,200 and resistance at 69,700-70,250 on the MCX, while platinum has support at 57,440-57,280 and resistance at 57,770-57,950.

We recommend purchasing gold over 57,600 with a stop loss of 57,380 and aiming for a price of 58,000. We also advise purchasing silver above 69,200 with a stop loss of 68,650 and aiming for a price of 70,300.