Gold and silver prices today: Yellow metal recovers after heavy sell-off; price rises by 1.23%

Gold opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 57,689 per 10 grams and hit an intraday low of Rs 57,681. In the international market, prices hovered around $1,861.05 per troy ounce. Meanwhile, silver opened at Rs 69,045 per kg, hit an intraday low of Rs 68,745 on the MCX, and hovered around $21.73 per troy ounce in the international market.

Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said spot gold closed with a jump of nearly 1.50 per cent at $1,861 on safe-haven demand as a result of the Hamas-Israel war. Apart from geopolitical factors, dovish comments from the US Federal Reserve also helped the metal. “Gold is recovering after a heavy sell-off. Thus, the metal may recover further in the wake of the Middle East conflict and upcoming US CPI inflation data. The US dollar index and bond yields may soften further into the run-up to the US CPI inflation data, which will keep the commodities bid,” said Singh.

Watch now: With ISRO-led Chandrayaan-3 Moon Mission success, spotlight now on private firms like L&T, Tata Consulting Engineers, start-ups like Pixxel, Skyroot Aerospace; what’s next for Indian Space Sector?

The first week of October was very negative for bullion, as prices were hammered on the US Fed’s aggressive stance for higher-for-longer monetary policy, which drove the dollar index to touch 107 levels and US Treasury Bond yields to surpass 5 per cent, the highest in 16 years. However, Prithviraj Kothari, MD CEO of RiddiSiddhi Bullions (RSBL), said, “Gold prices rebounded from the low of Rs 56,000 last week as prices were trading in an oversold zone and geopolitical tensions sparked a new wave of global risk aversion, assisting the safe-haven gold price to rise.”

Also read: How 24-year-old Delhi Based Harinath Mehra became debt-free in 4 months

Also read: My car’s insurance expired while I was abroad. Can I renew my policy with the same coverage?

Also read: Israel-Palestine war boosts safe-haven demand for gold; yellow metal prices rise more than 1%

From current levels of Rs 57500, this momentum is likely to continue at least towards the next resistance of Rs 58000 and 58500 in the short term. While silver can be bought near Rs 68000 for the target of Rs 70000 and Rs 72000 in the short-term, said Kothari.

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Gold prices increased sharply by 1.23 per cent and closed at a 5-day high at 57572 levels on the back of war between Israel and Hamas. The dollar index also corrected from the overbought zone, which signalled support for the gold price. The dollar index is trading below 106 levels. Now, the demand of fund houses and central banks is shifting from dollar to gold.”

Amit Khare, Associate Vice President at GCL Broking, said, “As per the daily chart, bullions are hitting bottom. We can see a good short covering rally. Momentum indicator RSI also shows this. Traders are advised to make fresh buy positions in Gold and Silver near the given support level one with the stop loss of support level two and book near the given resistance levels: Gold December Support 57200/56900 and Resistance 57600/57800. Silver December Support 68300/67400 and Resistance 69200/69700.”