Gold prices witnessed a sharp rally on Thursday, hitting fresh lifetime highs in both domestic and global markets, driven by safe-haven demand, a weaker US dollar, and rising geopolitical tensions.
On Multi Commodity Exchange (MCX), gold February futures jumped over 7%, to reach a record high of Rs. 1,77,782 per 10 grams. Silver March futures rose nearly 6% to hit an all-time high of Rs. 4,07,456 per kg.
The price of 24K gold climbed by Rs. 1,177 in early trade on Tuesday, with ten grams of the precious metal trading at Rs. 1,78,850.
The price of 22K gold also increased by Rs. 1,080 with ten grams of the yellow metal selling at Rs. 1,63,950.
The price of ten grams of 24K gold stood at Rs. 1,78,850 in Mumbai and Kolkata and Rs. 1,83,280 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs. 1,79,000.
Internationally, spot gold extended its rally, reaching around $5,600 per ounce, while silver traded just under $120 per ounce. The rally is driven forward by growing geopolitical tensions, particularly between the US and Iran, and continued uncertainty around global economic stability. US dollar index decreased by over 0.30% making bullion cheaper for overseas buyers.
The US Federal Reserve kept interest rates unchanged in the 3.5%-3.75% range, a move that was largely anticipated by the market. The policy decision produced no significant effects, but market participants continue to buy non-yielding assets such as gold amid anticipation of future rate cuts later this year. Rising geopolitical tensions have also strengthened gold's position as a hedge against uncertainty.
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On the MCX, gold is seen finding support near Rs. 1,64,000-Rs. 1,61,600, while resistance is placed around Rs. 1,70,000-Rs. 1,75,000. Silver support lies near Rs. 3,74,000-Rs. 3,64,800, with resistance around Rs. 4,00,000-Rs .4,14,000.
Gold’s global market support is now at $5,340 and $5,220, while resistance is at $5,525 and $5,600. Silver has support at $112.10 and $108.75, while resistance is at $118.15 and $122.