Gold prices surged by 1.44% to close at 60,073, driven by concerns over a broader Middle East conflict, prompting investors to flock to safe-haven assets. Federal Reserve Bank of Philadelphia President Patrick Harker emphasized the importance of not increasing borrowing costs to avoid economic strains.
Housing starts in September increased by 7%, reaching 1.358 million units, slightly below the expected 1.38 million, with August data revised down to 1.269 million units, marking a 7.2% decline in housing construction compared to September 2022. Building permits for future home construction dipped 4.4% in the last month, totaling 1.473 million permits, which, though lower, exceeded the consensus expectation of 1.455 million permits. August's figure was downwardly revised to 1.541 million, resulting in a 7.2% decrease in building permit issuances for the year. In Federal Reserve commentary, Richmond Fed President Thomas Barkin highlighted that higher long-term borrowing costs are dampening demand, while Minneapolis Fed President Neel Kashkari expressed concerns about persistently high inflation.
From a technical perspective, the market witnessed fresh buying, with open interest increasing by 5.16% to settle at 14,481. Meanwhile, gold prices rose by 855 rupees. Gold is currently finding support at 59,610, and if it falls below this level, it may test 59,155. On the upside, resistance is expected at 60,390, and a breakthrough could push prices to 60,715.
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