Gold Holds Strong at $1,860 Amid Fed`s Dovish Signals and Geopolitical Tensions

Published on Oct 11, 2023 13:41

Gold stood at $1,860 per ounce, up 1.5% this week, bolstered by dovish signals from the US Federal Reserve weakening the dollar and Treasury yields. It surged 1.6% on Monday due to Middle East geopolitical risks amid the Israel-Hamas conflict, increasing safe-haven demand. The dollar index held below 106 on Wednesday after losing more than 5% over the past five sessions, weighed down by dovish messaging from Federal Reserve officials. Investors now look ahead to minutes of the central bank`s last meeting on Wednesday, as well as key US inflation data - PPI on Wednesday and the CPI on Thursday, on Thursday to guide the monetary policy outlook. On Monday, gold jumped 1.6% as the Israel-Hamas conflict raised geopolitical risk in the Middle East, driving safe-haven demand for the metal. Gold surged 1.6% on Monday due to Middle East geopolitical risks amid the Israel-Hamas conflict, increasing safe-haven demand. MCX December gold futures trade at Rs 57,830 per 10 grams, with strong resistance around Rs 58,400. Silver futures also propelled higher following turn around in the overall sentiment. MCX Silver futures were seen trading up Rs 682 per kg at Rs 69600. The Rs 70400 mark should act as a resistance in near term.