Gold prices rise for sixth week on rising Iran-Israel war fears. US Fed rate, US dollar price in focus

According to commodity market experts, the gold complaint today is connected an uptrend owed to the rising geo-political hazard successful the Middle East aft the alleged reports of Israel's drone airstrike successful Iran. They said that the Iran-Iraq warfare fearfulness has fueled request for the haven offsetting the headwinds owed to rising US dollar rates. Experts maintained that the golden complaint contiguous important enactment placed astatine ₹72,300 to ₹72,270 levels whereas the broader scope for the MCX golden complaint contiguous is ₹72,300 to ₹73,300 per 10 gm. They besides maintained that the golden complaint contiguous is successful the tiny scope of $2,380 to $2,420 whereas the broader scope is $2,350 to $2m450 per ounce range.

Israel-Iran warfare fear

Speaking connected the crushed for the emergence successful golden terms today, Sugandha Sachdeva, Founder of SS WealthStreet said, "Gold prices person continued their relentless upside determination for the sixth consecutive week successful a row, hovering adjacent to grounds highs. Despite a beardown US dollar and indications from the US Federal Reserve that a restrictive monetary argumentation is apt to continue, golden prices surged by much than 1 percent. The US Fed's stance is influenced by the beardown US economy, labour market, and higher-than-expected ostentation people for March." However, the SS WealthStreet adept maintained that ongoing geopolitical risks successful the Middle East offset this imaginable headwind for golden prices.

US Fed rate, dollar terms successful focus

Advising golden and metallic investors to stay vigilant astir the US Fed news astir the upcoming gathering and involvement rates, Kotak Securities study says, "Focus mightiness present displacement to the US Fed gathering and US economical data. Minneapolis Fed President Neel Kashkari called for patience connected complaint reductions, saying the archetypal determination whitethorn not instrumentality spot until 2025. New York Fed President John Williams besides said that different complaint hike isn’t his basal case, but is inactive imaginable owed to inflationary risks. Swaps are pricing successful the archetypal 4th constituent chopped by September and little than 45 bps full cuts for the year."

"Following Iran's alleged drone attacks connected Israel implicit the weekend, determination is simply a prevailing situation of hazard aversion successful the markets, starring to a unreserved towards safe-haven assets similar gold, which has buoyed its prices. Gold prices person been trading successful a scope of ₹72,300 to ₹73,300 per 10 gm successful caller days. As agelong arsenic the enactment portion of ₹72,300 to ₹72,270 per 10 gm holds, the outlook for golden remains positive. However, a breach of this enactment portion could pb to immoderate nett booking arsenic prices look somewhat overstretched aft the steep run-up seen successful the past 3 months," Sugandha Sachdeva of SS WealthStreet said.

Sugandha Sachdeva went connected to adhd that successful the planetary markets, golden prices are uncovering enactment astir the $2,350 per ounce mark, with a cardinal absorption level placed astatine $2,450 per ounce.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

Unlock a satellite of Benefits! From insightful newsletters to real-time banal tracking, breaking quality and a personalized newsfeed – it's each here, conscionable a click away! Login Now!

Published: 20 Apr 2024, 10:16 AM IST