Informist, Monday, Oct 9, 2023
By Taniva Singha Roy and Romeo M. Raj
MUMBAI – Futures contracts of GOLD and SILVER on the Multi Commodity Exchange and COMEX rose today because of safe-haven demand amid increasing geopolitical tensions in West Asia after Palestine-based militant group Hamas launched an attack on Israel, with alleged Iranian involvement raising concerns of a regional conflict.
Gold acts as a safe haven during times of geopolitical crisis and economic uncertainty.
“The metal may gain further as the war intensifies, with rising death toll,” Praveen Singh, associate vice president, fundamental currencies and commodities, Sharekhan by BNP Paribas, said in a note.
As the week progresses, there is a possibility of gold prices increasing or remaining sideways due to the ongoing war in Israel. The situation might escalate with other West Asian countries declaring their stance on the war, said Kedia, managing director, Kedia Advisory.
Investors will take fresh cues from minutes of the US Federal Open Market Committee’s September meeting, as wel as US consumer price index data later in the week.
“The weekly pattern suggests that the upside correction can continue during the early part of the week. The broader term indicators are still in positive territory, but the near-term indicators are defying the bullish prospects. This shall imply only a moderate upside possibility in the coming days,” Religare Broking said in a report.
At 1940 IST, following were the most-active contracts of bullion:
-December gold was up 0.9% at 57,374 rupees per 10 gm on MCX
-December gold was up 0.8% at $1,859.85 an ounce on COMEX
-December silver was up 0.8% at 68,734 rupees per kg on MCX
–December silver was up 0.3% at $21.79 an ounce on COMEX
Outlook for the rest of the session:
-MCX gold seen at 57,180–57,740 rupees per 10 gm
-COMEX gold seen at $1,837.0–$1,860.0 an ounce
-MCX silver seen at 67,900-70,200 rupees per kg
-COMEX silver seen at $21.25-$22.10 an ounce.
End
US$1 = 83.26 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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