Gold gains as Mideast worries dominate sentiment

SINGAPORE, Oct 26 (Reuters): Gold prices edged up on Thursday as the Middle-East conflict kept investors worried, with bullion standing firm despite a stronger US dollar and bonds yields.
On account of Israel-Hamas war entering 20th day and rising tension in the Middle East fueling geopolitical uncertaities, gold price extended its rally during morning deals. Gold future contract on Multi Commodity Exchange (MCX) for December expiry opened at Rs 60,824 per 10 gm levels and went on to hit intraday high of Rs 60,968 per 10 gm levels within few minutes of commodity market's opening bell today. In international market, spot gold price is oscillating around $1,988 per ounce levels.
Likewise, silver rate today on MCX opened higher at Rs 71,799 per kg levels and went on to hit intraday high of Rs 71,896 per kg levels during opening bell today. In international market, silver price today is oscillating around $22.95 per ounce levels.
It is interesting to see that gold and silver prices have risen despite rise in US Treasury yields and US dollar. During morning deals in Asian stock market, 10-year US bond yiled climbed 0.17 per cent and touched 4.962 levels. US dollar index touched two week high of 106.76 levels.
On why gold and silver prices have been surging despite rise in US dollar rate and US Treasury yields, Anuj Gupta, Head - Commodity & Currency at HDFC Securities said, "MCX gold rate is rising due to uncertainties associated with the Israel-Hamas war. This geopolitical tension has entered 20th day after its outbreak on 7th October 2023 and the Middle East tension is yet to find any truce or any conclusive outcome."