MCX Gold Prices Drop Below ₹59,000 Amid Easing Middle East Tensions Post South Gaza Ceasefire Announcement
Today’s gold prices saw a temporary halt in their rally, following the announcement of a ceasefire in South Gaza by the US, Egypt, and Israel, which eased tensions in the Middle East. During morning trading, gold opened at a lower rate of ₹59,209 per 10 grams. The precious metal continued to slide, reaching an intraday low of ₹58,944. In the global market, gold prices remained above $1,900 per ounce.
Commodity market experts have noted that today, gold prices are experiencing a downward pressure, primarily due to the easing of tensions in the Middle East following the announcement of a ceasefire in South Gaza by the US, Egypt, and Israel. They attribute the recent surge in gold prices to the Israel-Hamas conflict. These experts suggest that on the MCX (Multi Commodity Exchange), gold prices have immediate support levels at ₹58,750 to ₹58,700, while facing resistance at ₹59,500. In the event of breaching the lower support levels, gold prices are expected to find support at ₹58,250 to ₹58,300 on the MCX and at $1,880 in the international market.
VK Vijayakumar, the Chief Investment Strategist at Geojit Financial Services, highlighted the recent factors that have driven the increase in gold prices. He stated, “The surge in Brent crude prices to over $90, spurred by concerns about the Israel-Palestine conflict, along with safe-haven demand, has propelled gold above $1,900. The market’s unease is evident as the CBOE VIX has risen above 19. Given the uncharted geopolitical terrain, it is prudent for investors to exercise caution.”
Key Price Levels to Monitor:
Explaining the drop in today’s gold prices, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, stated, “The easing of tensions in the Middle East following the announcement of a ceasefire in South Gaza by the US, Egypt, and Israel has put pressure on gold prices.”
Gupta further provided a broader price range for gold in the international market today, ranging from $1,900 to $1,980. On the MCX (Multi Commodity Exchange), the wider range is between ₹58,700 and ₹59,500 per 10 grams. He pointed out that the immediate support for MCX gold prices is between ₹58,750 and ₹58,500, while resistance is encountered at ₹59,800 per 10 grams.
He continued, “If the ₹58,700 support level on the MCX is breached, the price of gold may decline to around ₹58,300 per 10 grams. In the case of spot gold prices, a breach of the support at $1,900 per ounce could potentially lead to a decrease to $1,880 per ounce.”
In terms of today’s gold price, Anuj Gupta recommends implementing a “strict stop-loss” strategy. He suggests maintaining stringent stop-loss levels, emphasizing that the overall outlook for both gold and silver has become cautious following the de-escalation of the Israel-Palestine conflict.