Gold prices continued their momentum on January 14, 2025, reaching record levels on the Multi-Commodity Exchange (MCX), whereas silver saw an even sharper rally.
February futures for gold on the MCX gained more than 0.61% to reach a new peak of Rs. 1,43,106 per 10 grams. Silver surpassed gold's performance, as the March futures of silver rose 4.15% and reached a new high of Rs. 2,86,600 per kg.
In the overseas markets, gold prices were close to record levels and silver was getting closer to the $90 per ounce threshold.
The price of 24K gold increased by Rs. 109 by 10:20 am. 10 grams of the precious metal traded at Rs. 1,43,620.
The price of 22K gold also increased by Rs. 100, with ten grams of the yellow metal selling at Rs. 1,31,650.
The price of ten grams of 24K gold stood at Rs. 1,43,620 in Mumbai and Kolkata, and Rs. 1,44,880 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs. 1,43,770.
For December, the US core Consumer Price Index (CPI) went up by 0.2% month-on-month and by 2.6% year-on-year. This was below the analysts forecats, as they were expecting an increase of 0.3% and 2.7% respectively.
The market continued to speculate that the Fed could ease up on its monetary policy this year, but such a move at the next meeting is still considered unlikely.
The expectation of lower interest rates increases gold prices, as the cost of maintaining non-yielding assets decreases.
Moreover, the demand for safe-haven assets has become stronger due to the increasing geopolitical uncertainty.
The tensions in the Middle East, unrest in Iran, and the prolonged Ukraine crisis have made investors cautious.
Furthermore, the instability surrounding US trade policy has led investors to opt for less risky investments, driving prices of gold and silver.
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On MCX, gold has immediate support in the Rs. 1,41,400-Rs. 1,40,700 zone, with resistance placed at Rs. 1,43,000-Rs. 1,44,200.
Silver support is seen near Rs. 2,72,000, while resistance is located between Rs. 2,80,000 and Rs. 2,85,500.
Internationally, gold has support at $4,584 and $4,555, while resistance is at $4,634 and $4,670 per troy ounce.
Silver has support at $84.40 and $81, while resistance is at $89.20 and $92 per troy ounce.