Gold prices opened on the MCX on Monday at Rs 72,030 per 10 grams and hit an intraday low of Rs 71,850. In the international market, prices hovered around $2356.21 per ounce.
Meanwhile, silver opened at Rs 82,799 per kg and hit an intraday low of Rs 82,798 on the MCX. In the international market, the price hovered around $28.31 per ounce.
Deveya Gaglani, Research Analyst—Commodities, Axis Securities, said, “Gold prices extended their winning streak in the last session. Prices reached a record high of Rs 73900 due to renewed geopolitical tension in the Middle East.”
Additionally, Kaynat Chainwala, Senior Manager of commodity Research at Kotak Securities, said, “COMEX Gold prices extended gains for the fourth straight week and notched a record high of $2448.8 per troy ounce during the previous week, amid escalation in the geopolitical tensions.”
However, prices failed to sustain near the day’s high as the rally was overstretched and was down due to profit booking. On the other hand, the dollar index edged higher above the $106 level, which dented the appeal of precious metals as they are inversely correlated with each other.
“The correction in prices is a good opportunity for investors who have missed the Gold rush, and they enter around the 70000-68000 level in a staggered manner as the long-term trend remains positive due to war-like scenarios in the Middle East and Major Central banks are piling up Gold. We expect trend reversal only if the prices settle below the $2280 level on the weekly chart,” said Gaglani.
Markets were gauging the impact of a an Iranian attack on Israel and feared it would mark the explosion of a full-blown regional war. Even though the attack during the weekend was foiled with the helped of Israel’s allies, markets weigh the risk of retaliation. For the week, US Retail sales and industrial production, along with a slew of Chinese data and speeches from FOMC members, will be watched.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “Gold prices surged by over Rs 1000 to reach Rs 72700, largely driven by escalating tensions between Iran and Israel amidst the ongoing Middle East crisis. This geopolitical uncertainty has fueled a rush into safe-haven assets, propelling gold prices up by 1.60%. Despite this sharp increase, the overall trend in gold remains bullish, with strong support seen at 70000.”