Gold Prices Soar as Iran-Israel Tensions Escalate: Is it Time to Buy?

Tanushree Jaiswal Tanushree Jaiswal 19th April 2024 - 01:10 pm
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Gold is often seen as a safe investment during uncertain times. The conflict could lead to an increase in gold prices. Gold Rate today jumped by more than ₹1,000 to ₹74,340 per 10 gram today, largely driven by escalating geopolitical tensions. This geopolitical uncertainty has fueled a rush into safe-haven assets, propelling gold prices up by 1.60%.

The latest leg higher in Gold price was mainly driven by mounting fears over a widespread regional conflict in the Middle East after ABC News confirmed, citing a US official, that Israel fired missiles on Iran’s central city of Isfahan. 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.

Gold prices are surging after an escalation in the geopolitical tension in the Middle East. The Middle East tension has risen after reports of Israel's ‘missile attack’ in an Iranian city, which has fueled the Iran-Israel war," said Anuj Gupta, Head of Commodity & Currency at HDFC Securities. 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.”

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 launched missile strikes against Iran during early hours on Friday morning (local time), ABC News reported citing a senior US official. The report came shortly after local sources reported blasts in Isfahan region in Central Iran. 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.

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