Gold prices in India will track global prices of yellow metal amidst escalating tensions between Israel-Iran-Hezbollah. The war in the Middle East continues to be at knife edges, ready to spill over into global supply-chain constraints. The aviation sector has already been impacted with flights getting cancelled in regions of Iran, Jordan, Iraq and Lebanon. Is it right time to buy gold?
Gold Price Outlook:
Hareesh V, Head of Commodities, Geojit Financial Services: Gold prices hovering near lifetime highs on worries over escalating Middle East tensions which raised the haven demand for the commodity."
Further, the analyst added, A possible increase in jewellery demand amid peak festival season and a weak Indian rupee also aided the commodity in the domestic market. Meanwhile, a sharp recovery in the US dollar limited major gains. Anyhow, investors are now focusing on US Non-farm payrolls data scheduled on Friday to get an outlook on the US economy and the further policy path of the US central bank.
Should You BUY Gold?
As per Justin Khoo, Senior Market Analyst APAC, VT Markets, before considering trading gold, two key factors must be monitored: strong labor data on Friday and a decisive gold close above 2685.49. Only if these conditions are met should we proceed to identify suitable buy areas.
Gold Prices In India: Currently, 24K/10 grams gold price is at a record high at Rs 77,560, while 22K and 18K of 10 grams gold are at Rs 71,100 and Rs 58,170 also around their all-time high. Silver prices, meanwhile, are at Rs 95,000 for 1Kg.
Spot Gold, US Gold: As per Reuters, Gold prices held steady on Thursday as safe-haven demand from escalating tensions in the Middle East offset pressure from a stronger dollar after investors toned down expectations of another big interest-rate cut from the U.S. Federal Reserve.
Currently, US gold futures are at $2,681.05, up marginally. Meanwhile, spot gold is at $2,661.34 per ounce, also near its record levels.
MCX Gold, Silver Prices: MCX gold prices in December expiry is at Rs 76,351, up by Rs 107. While MCX silver prices is at Rs 93,106 per 1 kg up by Rs 128.
Israel is in a brutal riff-off with Hezbollah for the first time since 2006. Since the ground invasion that started in late September 2024, Israel has been raging through Hezbollah militant bases. It has now reached the heart of the capital, Beirut, countering Hezbollah fighters in a bloody battle.
In the latest airstrike, Israel's bombardment reportedly killed nine people in Beirut. However, as per Health Minister Firass Abiad, about 1,974 people have lost their lives including 127 children, while some 9,384 are injured since the latest Israeli ground invasion, which also comes for the first time as a critical response from Israel has been receiving rockets and missiles from Hezbollah right after October 7th massacre.
Meanwhile, Iran's UN ambassador has stated that the country's latest barrage of missiles in Israel was a proportionate response.
With the war only intensifying by the day, the UK, Russia and other countries are chartering flights to evacuate their citizens from Lebanon, while airlines such as Emirates, Qatar Airways and others have either cancelled or suspended flights to Iran, Iraq, Jordan, and Lebanon due to the geopolitical unrest in the Middle East.
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