Gold Market Update

MCX Gold Rate: The ₹1,61,675 per 10 gm price at the end of last week reflects a sideways to positive trend, with a distance of ₹19,000 from the lifetime high of ₹1,80,779 per 10 gm.

International Market: The COMEX gold price closed at $5,158.70 per troy ounce, $468.10 away from the lifetime high of $5,626.80 per ounce.

According to market experts, the escalation of the US-Iran war has not significantly impacted gold prices, as rising crude oil prices have driven the US Dollar Index towards 100, acting as a headwind to the rally in gold prices. However, geopolitical tensions and uncertainty are expected to persist, driving up the demand for safe-haven assets such as gold and silver.

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Key Drivers:

• US Dollar Index: The strengthening US dollar has capped gains in precious metals, as both gold and the US dollar compete for safe-haven demand.
• Crude Oil Prices: Rising crude oil prices have driven the US Dollar Index towards 100, impacting gold prices.
• Geopolitical Tensions: Uncertainty and tensions in the Middle East and other regions are expected to persist, driving up the demand for safe-haven assets.

Investment Strategy:

• Bullish Momentum: The daily chart reflects continued bullish momentum, with prices holding comfortably above key support levels.
• Support Zones: The $5,000-$5,100 zone acts as strong near-term support, while a decisive breakout above $5,200 could accelerate the next leg higher.
• Accommodative Monetary Policy: Expectations of global shifts toward accommodative monetary policy support the broader bullish structure.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Outlook:

• Key Support: The key support for Gold is seen at ₹1,37,000 per 10 gm mark.
• Renewed Bullish Momentum: Prices need to sustain above ₹1,65,000 per 10 gm in the domestic market and $5,280 per ounce globally to open the door for the next leg of the rally.