On Tuesday, September 23, Gold prices extended their rally, touching new all-time highs on the Multi-Commodity Exchange (MCX) amid supportive global cues, robust domestic demand, and ongoing concerns over trade tariffs.
MCX Gold October futures were trading 0.15% higher at Rs. 1,12,397 per 10 grams, after briefly scaling a record peak of Rs. 1,12,419 in morning trade. In contrast, MCX Silver December futures slipped 0.12% to Rs. 1,33,389 per kg.
This year, gold has surged 47% in the Indian market due to rising geopolitical risks, central banks continuing to accumulate aggressively, and strong retail buying in advance of the festive season.
The recent 25-basis-point rate cut by the US Federal Reserve, expectations of further easing, and a weaker dollar have further boosted the metal’s momentum.
Spot gold in India was quoted at Rs. 1,13,080 per 10 grams (24-carat), up Rs. 10 from the previous session, while 22-carat gold was trading at Rs. 1,03,660 per 10 grams in most metro cities.
Globally, gold prices reached new records as traders positioned for additional rate cuts from the US Federal Reserve. Spot gold rose 0.2% to $3,752.43 per ounce, after hitting a record $3,758.03 earlier in the session. US gold futures for December delivery climbed 0.3% to $3,787.60.
Meanwhile, spot silver eased 0.2% to $43.98 per ounce, hovering near a 14-year high. Platinum and palladium also gained ground, adding 0.3% and 0.9% respectively.
The US dollar index fell to 97.20, down 0.10%, making bullion cheaper for overseas buyers and further enhancing its global demand.
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According to Rahul Kalantri of Mehta Equities, gold remains well supported by central bank purchases and strong ETF inflows. He sees domestic support levels for gold at Rs. 1,11,670-Rs. 1,11,380, with resistance at Rs. 1,12,650-Rs. 1,12,900. For silver, support lies near Rs. 1,32,450-Rs. 1,31,750, with resistance at Rs. 1,34,850-Rs. 1,35,600.
Manoj Kumar Jain of Prithvifinmart Commodity Research recommends buying gold near Rs. 1,11,800 with a stop loss at Rs. 1,11,180, targeting Rs. 1,13,000. For silver, he suggests an entry of around Rs. 1,32,500, targeting Rs. 1,35,000.
Industry voices also point to strong festive demand in India and a reluctance among investors to book profits, which is keeping prices fueled.