Gold hits seven-week high as safe-haven demand offsets hopes of US-Iran deal
New Delhi, Aug 6
Gold prices on Thursday climbed to a seven-week high as lower US Treasury yields boosted safe-haven demand even as optimism over a possible US-Iran agreement raised hopes of easing geopolitical tensions in West Asia.
On the Multi Commodity Exchange (MCX), gold futures (October 5) opened 0.36 per cent or Rs 536 higher at Rs 1,49,029 per 10 grams and later touched an intraday high of Rs 1,49,700 -- an increase of 0.81 per cent or Rs 1,207 by 12:10 pm.
On the other hand, silver futures (September 4) prices have witnessed buying momentum in early deals.
The white metal touched an intraday high of Rs 2,28,397 per kg, an increase of 0.35 per cent or Rs 813 compared to the previous close of Rs 2,27,584. At the last count, it was trading at Rs 2,26,580, a decrease of 0.44 per cent or Rs 1,004.
In the international market too, COMEX gold was trading 0.36 per cent higher at $4,320 per ounce. COMEX silver was at $62.36 per ounce, up 0.12 per cent.
However, the rally came despite reports claiming that the Strait of Hormuz could reopen and comments by US President Donald Trump indicating that Washington was seeking to reach an agreement with Iran.
According to market experts, expectations that easing tensions in the region could lead to lower crude oil prices have reduced concerns over inflation and near-term US monetary tightening, putting pressure on US Treasury yields.
For MCX gold, immediate resistance is at Rs 1,50,000-1,50,700 and a break above targets next resistance at Rs 1,52,200-1,52,800, the experts said, adding that immediate support is at Rs 1,48,600-1,48,000 with next support at Rs 1,46,600-1,46,000.
"Price has decisively broken above all key EMAs (20/50/100/200), confirming a strong shift in near-term momentum after weeks of consolidation. Bias stays positive above Rs 1,49,000, with a hold needed to extend gains toward Rs 1,50,000; a slip below Rs 1,49,000 would signal exhaustion after the sharp run-up, they added.
For silver, the analysts said that a sustained move above Rs 2,29,000 and a break above targets next resistance at Rs 2,31,500-2,32,500.
Immediate support is at Rs 2,25,000-2,24,000, previously resistance now acting as support, with next support at Rs 2,22,000-2,21,000, according to them.
Price is holding above its 20-EMA and 200-EMA, with RSI at 54, edging upward, reflecting improving momentum, though a decisive close above the 50-EMA is needed to confirm renewed strength, the experts said, adding that bias stays cautiously constructive above Rs 2,28,000, with a break above Rs 2,30,000 opening the path toward higher levels; a slip below Rs 2,27,000 risks a pullback toward Rs 2,25,000.
Additionally, Brent crude -- the international oil benchmark -- slipped 0.51 per cent to trade below $80 per barrel. Similarly, US West Texas Intermediate (WTI) crude slumped nearly 1 per cent to below $75.
— IANS
Reader Comments
My grandmother always said, "Sona hai toh sookha hai" - gold is the only thing that keeps its value in chaos. With global tensions and this US-Iran drama, no wonder people are rushing to gold. But at these levels, I'm not sure if it's FOMO or genuine safe-haven demand.
As someone who tracks MCX daily, this rally is purely technical. The break above 20/50/100/200 EMA is textbook bullish. But I'd advise caution - the US-Iran deal, if it materializes, could send prices crashing. Don't chase at resistance levels. Wait for a pullback near ₹1,48,000.
Gold is India's second-most loved thing after cricket! 😄 But joke aside, with rupee depreciation and global uncertainty, it's a smart move. Though I wish the government would do something about the import duty - it makes gold even more expensive for the common man.
These prices are insane! My mother's gold loan EMI is going to increase if this keeps up. But isn't it interesting that even good news about US-Iran talks can't bring prices down? It shows how much fear is baked into the market.
Interesting to see how much Indian investors are influenced by global factors. The gold rush here mirrors what I see back home in the US. But the ₹1.5 lakh mark seems psychologically important - if it breaks decisively, we could see a move to ₹1.52 lakh easily.
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