MCX Gold Tops ₹1.44 Lakh As Safe-Haven Buying Returns; Crude Oil Surges 4%

Gold and silver extended gains on Wednesday as investors shifted towards safe-haven assets after tensions in the Middle East escalated further. Crude oil also climbed sharply on fears that the conflict could disrupt supplies from the region.

At around 1:30 pm IST, MCX Gold August futures traded at ₹1,44,434 per 10 grams, up 1% from the previous close. MCX Silver September futures added 0.5% to ₹2,24,957 per kg, while MCX Crude Oil August futures rose 3.8% to ₹8,466 per barrel.

Internationally, spot gold was quoted near $4,120 an ounce, about 1.1% higher on the day. Spot silver gained 0.7% to around $59.5 an ounce.

Buying in bullion picked up after fresh military action in the Middle East heightened uncertainty across financial markets. Investors also tracked Houthi threats to Red Sea shipping and higher crude oil prices, both of which added to inflation concerns.

Flows into gold-backed exchange-traded funds also improved. ETF holdings recorded their biggest single-day increase since June 19, while speculative positioning turned more positive. A stronger US dollar and expectations that US interest rates could stay elevated, however, continued to limit the upside. A Kotak Neo Commodity Research report said geopolitical developments and stronger investment flows were helping keep bullion prices supported.

Oil prices moved higher for a sixth straight session. Brent crude traded close to $93.9 a barrel, while WTI crude hovered around $87.2.

Markets continued to price in a higher geopolitical risk premium as the conflict between the US and Iran showed little sign of easing. Supply concerns were also fuelled by attacks near the Strait of Hormuz, fresh threats to vessels in the Red Sea and disruptions to exports through Russia's Caspian Pipeline Consortium.

Technical Outlook

MCX Gold

Gold futures have broken above a falling trendline and continue to trade above both the 20-day and 50-day exponential moving averages, keeping the short-term trend positive.

The Directional Movement Index remains in favour of buyers, while an ADX reading near 38 indicates the current trend is gaining strength. Support is placed at ₹1,43,350-₹1,43,820, while resistance is seen at ₹1,45,340-₹1,45,810.

MCX Silver

Silver has held above important support levels despite intermittent profit-taking, indicating that buying interest remains intact.

Immediate support is placed between ₹2,22,130 and ₹2,23,358, while resistance is seen in the ₹2,27,332-₹2,28,560 range.

MCX Crude Oil

The near-term trend in crude oil remains positive as geopolitical risks continue to dominate sentiment.

The report expects the contract to trade in the ₹8,260-₹8,765 range. Support is placed at ₹8,315, while resistance levels are seen at ₹8,638 and ₹8,753.

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