Gold rate today: On account of rising geo-political tension in the Middle East region, gold prices witnessed buying interest during the early morning session on Friday. Gold price on the Multi Commodity Exchange (MCX) opened upside and went on to touch an intraday high of ₹72,869 per 10 gm. In the international market, spot gold price also showed upside movement and came close to $2,400 per troy ounce levels in early morning deals. Spot gold price is currently oscillating around $2,395 levels.
Israel-Iran war in focus
On why gold rates are in an uptrend today, Anuj Gupta, Head of Commodity & Currency at HDFC Securities said, “Gold prices are surging after an escalation in the geo-political tension in the Middle East. The Middle East tension has risen after Israel’s missile attack in Tehran, which has fueled the Iran-Israel war.”
On other factors that are fueling gold prices today, Kotak Securities report said, “COMEX Gold prices edged higher amid dollar weakness, improved demand from Chinese buyers and central banks. Fed Chair Jerome Powell flagging a likely delay in the much-anticipated pivot after a series of surprisingly high inflation readings. Swaps markets now see just a 16% chance of a reduction in borrowing costs in June, down from 57% at the end of last month.”
Gold price outlook
Advising a ‘buy-on-dips’ strategy regarding gold and silver prices, Anuj Gupta of HDFC Securities said, “Overall outlook for gold and silver prices are positive. Any dip should be seen as a buying opportunity. In the international market, gold prices are in the $2,360 to $2,420 per troy ounce range. On breaching the upper hurdle, gold prices may go up to $2,450 per troy ounce levels.”
Anuj Gupta maintained that the MCX gold rate today has immediate support placed at ₹72,200 per 10 gm levels whereas it is facing resistance at ₹73,500 per 10 gm level. On breaching this resistance, MCX gold rates may go up to ₹74,250 to ₹74,300 per 10 gm levels in the near term.
Israel-Iran war news
Israel launched missile strikes against Tehran during early hours on Friday morning (local time), ABC News reported citing a senior US official. However, the official could not confirm whether Syria and Iraq sites were hit as well. The report came shortly after local sources reported blasts in Isfahan region in Central Iran.
Iran’s air defence systems were activated in several locations after multiple explosions were heard close to the airport and an army base in the Iranian city of Isfahan, state media reported early Friday morning.
The missile launches come after Iran launched an offensive on targets around Israel on Saturday last week, according to Israeli military authorities, in which the nation fired a barrage of over 300 unmanned drones and missiles.
(With inputs from ANI)
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