Gold prices hit record highs on September 29, Monday, as a result of a declining dollar and increasing expectations of further US interest rate cuts before the end of the calendar year. The advance was mirrored in domestic markets too, as retail prices of gold surged across major Indian cities.
On the Multi Commodity Exchange (MCX), December gold futures climbed to an unprecedented Rs. 1,15,590 per 10 grams before easing slightly to Rs. 1,15,436, up 0.47% for the session. Silver futures also surged, with December contracts hitting Rs. 1,43,968 per kilogram before stabilizing at Rs. 1,43,433, a gain of 1.09%.
The dollar index slipped by more than 0.20%, making gold cheaper for overseas buyers and boosting global demand. International spot gold also touched new highs, with markets pricing in a 90% chance of a US Fed rate cut in October and a 65% probability of another reduction in December, according to CME FedWatch Tool data.
Analysts remain positive on bullion’s medium-term outlook despite near-term volatility. Manoj Kumar Jain of Prithvifinmart Commodity Research noted that gold has strong support at Rs. 1,14,200-Rs. 1,13,650 and resistance at Rs. 1,15,400-Rs. 1,16,000, while silver holds support around Rs. 1,40,400-Rs. 1,39,100 with resistance near Rs. 1,45,000.
Rahul Kalantri of Mehta Equities added that international gold support lies at $3,730-$3,710 per troy ounce, with resistance at $3,785-$3,820, suggesting that dips in gold could provide attractive buying opportunities for investors.
In Mumbai, the retail price of 24-carat gold rose to Rs. 11,640 per gram, an increase of Rs. 92 from the previous session, while the price for 10 grams stood at Rs. 1,16,400, higher by Rs. 920.
The 22-carat segment also saw gains, with one gram priced at Rs. 10,670, up by Rs. 85, and 10 grams trading at Rs. 1,06,700, marking a rise of Rs. 850 from yesterday’s levels.
In Chennai, 24-carat gold was quoted at Rs. 11,673 per gram, higher by Rs. 65, and at Rs. 1,16,730 per 10 grams, a gain of Rs. 650.
Meanwhile, 22-carat gold in the city reached Rs. 10,700 per gram, up by Rs. 60, while the price for 10 grams climbed to Rs. 1,07,000, an increase of Rs. 600 compared with the previous session.
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With global uncertainties, a declining dollar, and US Federal Reserve policy indications, analysts believe short-term volatility will persist. The long-term trend for gold, however, remains supported by safe-haven demand and easing monetary expectations. Traders should approach their positions cautiously, while longer-term investors can continue to accumulate on dips.