Gold prices jump after escalation in Iran-Israel war. Should you buy in this rally?
Gold rate today: On account of rising geo-political tension in the Middle East region, gold prices witnessed buying interest during the early morning session on Friday. Gold price on the Multi Commodity Exchange (MCX) opened upside and went on to touch an intraday high of ₹72,869 per 10 gm. In the international market, spot gold price also showed upside movement and came close to $2,400 per troy ounce levels in early morning deals.
Spot gold price is currently oscillating around $2,395 levels. On why gold rates are in an uptrend today, Anuj Gupta, Head of Commodity & Currency at HDFC Securities said, “Gold prices are surging after an escalation in the geo-political tension in the Middle East. The Middle East tension has risen after Israel's missile attack in Tehran, which has fueled the Iran-Israel war." On other factors that are fueling gold prices today, Kotak Securities report said, "COMEX Gold prices edged higher amid dollar weakness, improved demand from Chinese buyers and central banks.
Fed Chair Jerome Powell flagging a likely delay in the much-anticipated pivot after a series of surprisingly high inflation readings. Swaps markets now see just a 16% chance of a reduction in borrowing costs in June, down from 57% at the end of last month." Advising a ‘buy-on-dips’ strategy regarding gold and silver prices, Anuj Gupta of HDFC Securities said, “Overall outlook for gold and silver prices are positive. Any dip should be seen as a buying opportunity.
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