International News
Gold surges to seven-week highs amidst Israel -Iran tension
MCX gold rate breaches Rs 1 lakh mark
Gold prices are experiencing a significant surge, reaching a seven-week high and nearing the $3,450 mark early on Friday. This upward movement is primarily driven by the escalating conflict between Israel and Iran, which is fueling a strong flight to safety among investors.
The precious metal’s appeal as a safe haven asset has been undeniable, with gold extending its winning streak for a third consecutive day. This unabated demand is evident in Asian trading, where gold prices have already gained approximately 1.50% on Friday. The daily Relative Strength Index (RSI) is bullish, further indicating a positive outlook for gold as it maintains its upward trajectory after successfully holding above the $3,377 level.
Gold prices on MCX opened higher on Friday, tracking gains in international bullion prices as rising geopolitical conflict in the Middle East increased safe-haven bets for the yellow metal. Silver prices also extended gains. MCX gold rate opened higher by ₹1,108, or 1.12%, at ₹99,500 per 10 grams as against its previous close of ₹98,392. The price jumped to a high of ₹100,403 level.
Safe-haven demand was further boosted by growing uncertainty over US trade policy. President Donald Trump threatened to impose unilateral tariffs to pressure trading partners, though Treasury Secretary Scott Bessent suggested the current 90-day tariff pause could be extended.
On the economic front, softer-than-expected US consumer and producer inflation data earlier this week increased expectations for additional Federal Reserve rate cuts this year, providing further support for non-yielding assets like gold.
- Around $3728 (~Rs 110,300) for gold futures and $43.23 (~Rs 129,7000) for silver, both markets were trading close to a record high ahead of the US FED’s two-day policy meeting that begins today.
- The Fed is expected to cut interest rates by 25 basis points on Wednesday, the first since December, and markets are almost certain that the easing cycle will continue into the following year. Recap: Despite the president’s dismissal, the federal appeals court permits Lisa Cook to remain as a Fed gov and take part in the FOMC meeting beginning tomorrow.
- For clues about the direction of future policy, all eyes will be on the Fed’s quarterly Summary of Economic Projections, which includes the much-awaited dot plot, and Chair Jerome Powell’s press conference. Regarding the data, reports on industrial production and retail sales that are anticipated later today will be closely examined to gain more understanding of how strong the economy is.
Technical Triggers
- Gold Dec Futures has given a breakout above $3700 (~Rs 110,000), the next target would be $3800 (~Rs 113,500). If prices top out and fall below $3650 (~Rs 108,500), then only we could see further profit booking.
- Silver Nov Future prices have given a breakout above its consolidation range of $41 (~Rs 123,000) and $42 (~Rs 126,000) for the past few days and achieved the target of $43. This rally has more room for upside towards $45 (~Rs 140,000)
Support and Resistance
| Commodity | Market | Support Level | Resistance Level |
|---|---|---|---|
| Gold | International | $3650/oz | $3800/oz |
| Indian | ₹108,500/10 gm | ₹113,500/10 gm | |
| Silver | International | $42.5/oz | $45/oz |
| Indian | ₹127,000/kg | ₹140,000/kg |
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