On October 1, gold reached new record levels as investors rushed to safe-haven assets amid worries about a potential US government shutdown. Prices for domestic bullion mirrored the global uptick, with gold prices soaring sharply domestically.
On the Multi Commodity Exchange (MCX), December Gold futures hit a new peak of Rs. 1,17,800 per 10 grams, while silver futures surged to Rs. 1,44,844 per kg in morning trade. By 9:00 am, gold contracts were up 0.37% at Rs. 1,17,698, and silver gained 1.04% at Rs. 1,43,620.
Analysts attributed the rally to weakness in the US dollar, growing bets on further Federal Reserve rate cuts after soft labour market data, and uncertainty over Washington’s ability to extend funding. The dollar index hovered near a one-week low, making gold cheaper for overseas buyers.
According to Manoj Kumar Jain of Prithvifinmart, investors should refrain from short-selling and instead use corrective dips as opportunities to accumulate fresh long positions.
He highlighted that MCX Gold finds support in the range of Rs. 1,16,550 to Rs. 1,15,700, while resistance levels are placed between Rs. 1,18,000 and Rs. 1,18,800. Similarly, MCX Silver has support in the zone of Rs. 1,41,000 to Rs. 1,39,800, with resistance levels seen at Rs. 1,43,500 to Rs. 1,44,800.
Rahul Kalantri of Mehta Equities also anticipates continued bullish momentum in gold. He pointed out that, in the international market, gold prices are supported between $3,830 and $3,810 per troy ounce, while resistance is expected around $3,884 to $3,910 per troy ounce.
Gold prices surged in Mumbai. The price of 24-carat gold reached Rs. 11,864 per gram, an increase of Rs. 120 from the previous day, and the cost for 10 grams was Rs. 1,18,640.
At the same time, the cost of 22-carat gold in the city was Rs. 10,875 per gram, higher by Rs. 110, and for 10 grams the cost is Rs. 1,08,750.
Chennai too recorded steady gains in bullion rates. The price of 24-carat gold moved up to Rs. 11,880 per gram, a rise of Rs. 32 compared to yesterday, with 10 grams priced at Rs. 1,18,800.
On the other hand, 22-carat gold was valued at Rs. 10,890 per gram, reflecting an increase of Rs. 30, while 10 grams reached Rs. 1,08,900.
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Gold’s rally underlines gold’s safe-haven appeal in times of global financial instability. With the RBI’s policy decision due today and the US political stalemate creating volatility, traders expect bullion to remain supported in the near term. Experts advise retail investors to adopt a cautious accumulation approach instead of chasing spikes intraday.