Gold Rate Rallies To US$ 1720/oz, After 1-Month's Of Downturn: Safe Haven Concern

In the international markets, the gold rate rallied to US$ 1,720/oz after 1-month's of a sharp downturn. In the past 1 month, gold and silver markets remained under pressure due to the sharp gain in the US Dollar index and in the US Bond yield. The US Federal Reserve has been hiking the interest rate consistently to control inflation. Expecting the inflation rate can fall, the gold markets started to fall. However, this month, gold rates started to recover quickly in the global markets.

Yesterday, Institute for Supply Management, stated that in September, manufacturing PMI dropped to 50.9%. This has helped the yellow metal to strengthen its position, as safe haven concerns intensified. Additionally, Russian President Vladimir Putin has recently threatened to use nuclear war against Ukraine, which has again triggered investors to take shelter under gold.

Following the global trend, Indian gold rates have also gained today. The 22-carat gold rate is quoted at Rs. 47350/10 grams, and the 24-carat gold rate is quoted at Rs. 51660/10 grams, surging by Rs. 500-550/10 grams respectively.

Today, the Comex gold futures were quoted at $1,715.60/oz, up by 0.80%, till last traded. On the other hand, the US Dollar index fell to 111.28, down by 0.42%, till last traded. Today, in India, the Mumbai Commodity Exchange (MCX) gold in October future is quoted at Rs. 51413/10 grams, up by 0.49%, from the last trading day. Meanwhile, the 2-year Treasury bond yield fell around 4.025%, and the 10-year U.S. Treasury yield fell around 3.591%.

"December gold futures prices hit a three-week high today. The gold futures bears still have the overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,622.20. First resistance is seen at today's high of $1,703.20 and then at $1,725.00. First support is seen at $1,675.00 and then at today's low of $1,666.50," stated analyst Jim Wyckoff told Kitco News.