The gold prices continued their rally on Wednesday, breaching the Rs. 1,22,000 lakh per 10-gram mark for the first time on the Multi-Commodity Exchange (MCX). Strong global cues, safe-haven demand, and growing expectations of US Federal Reserve rate cuts have pushed gold prices to new all-time highs.
MCX Gold December futures were up 0.86% at Rs. 1,22,149 per 10 grams, after touching a record Rs. 1,22,165. Silver December futures also gained 1.14% to Rs. 1,47,450 per kg.
In global markets, US gold futures for December surged past the $4,000 per troy ounce mark to reach an all-time high of $4,037, while spot gold was trading roughly around $3,995.14.
Analysts said that the ongoing global risk factors, like the US government shutdown, the Fed rate cut possibilities, and continued increases in central bank purchases, were driving the rally.
Spot prices of gold in the domestic market have seen a rise of about 55% year-on-year, making it highly attractive for investment purposes.
In Mumbai, gold prices were on a strong upward trend. Gold prices 24-carat gold reached Rs. 12,317 per gram, Rs. 115 up from the last close of Rs. 12,202, and the price for 10 grams rose to Rs. 1,23,170, an increase of Rs. 1,150.
The 22-carat climbed to Rs. 11,290 from Rs. 11,185 on the previous day. For 10-gram, it reached Rs. 1,12,900, climbing Rs. 1,050 from the previous day.
The gold prices in Chennai also climbed higher. The price of 24-carat gold rose by Rs. 110 per gram to Rs. 12,328 from Rs. 12,218 on Tuesday. The 10-gram rate climbed Rs. 1,100 to reach Rs. 1,23,280.
The 22-carat gold price also strengthened, moving to Rs. 11,300 per gram from Rs. 11,200 the previous day. The 10-gram rate reached Rs. 1,13,000, with an increase of Rs. 1,000.
Analysts remain optimistic but advise caution at current elevated levels. Anuj Gupta, SEBI-registered analyst, expects MCX gold to rise further to Rs. 1,25,000 per 10 grams by year-end, supported by global rate cuts and safe-haven flows.
Meanwhile, Manoj Kumar Jain of Prithvifinmart Commodity Research suggests booking partial profits and re-entering on dips near support zones of Rs. 1,20,400-Rs. 1,19,800, with resistance around Rs. 1,21,800-Rs. 1,22,500.
Rahul Kalantri of Mehta Equities added that gold maintains strong support near Rs. 1,20,600, with possible resistance near Rs. 1,22,400 in the near term.
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With geopolitical tensions, weakening dollar sentiment, and expected US Fed rate cuts, gold’s bullish momentum appears far from over. Some short-term corrections may come, but the long positions remain and should be held for potential targets near Rs. 1,25,000 per 10 grams in the months ahead, as per analysts.