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On Wednesday, October 15, gold prices continued their upward trajectory, hitting fresh highs in both domestic and international markets as renewed US-China trade tensions, hopes for future US Federal Reserve interest rate cuts, and strong safe-haven demand all contributed to higher prices.
On the Multi Commodity Exchange (MCX), December gold futures surged 0.52% to open at Rs. 1,26,915 per 10 grams, compared with the previous close of Rs. 1,26,256. During intraday trade, gold touched a new lifetime high of Rs. 1,27,500 per 10 grams.
Meanwhile, the strong demand in the physical market had a positive influence on the silver prices, which rose 1% to an intraday peak at Rs. 1,61,418 per kg.
At 9:00 a.m., MCX gold was trading Rs. 579 higher at Rs. 1,26,835 per 10 grams. Globally, spot gold was up 0.4% at $4,155.99 per ounce, hovering near its all-time high of $4,179.48 reached on Tuesday. US gold futures for December delivery also rose 0.3% to $4,174.30.
In Mumbai, 24-carat gold prices climbed sharply to Rs. 12,889 per gram, up Rs. 54 from the previous day’s Rs. 12,835. For 10 grams, the rate stood at Rs. 1,28,890, marking an increase of Rs. 540.
The 22-carat gold price rose to Rs. 11,815 per gram, up Rs. 50, while 10 grams of 22K gold was priced at Rs. 1,18,150, higher by Rs. 500 from Tuesday.
In Chennai, 24-carat gold was priced at Rs. 12,938 per gram, up Rs. 38 from Rs. 12,900 a day earlier. For 10 grams, the rate increased to Rs. 1,29,380, a rise of Rs. 380.
The 22-carat gold also saw a rise, as prices reached Rs. 11,860 per gram, an increase of Rs. 35, while for 10 grams the price was Rs. 1,18,600, a rise of Rs. 350.
The consistent increase indicates strong local demand, in addition to the rise in global gold prices and a weaker rupee against the US dollar.
Also Read: Gold vs Stocks: Which Should You Choose This Diwali?
Gold's price has increased by 55% year-to-date, driven by geopolitical risks, central banks' purchasing, ETF inflows, and the continuing trend of de-dollarisation. Analysts expect the bullish momentum to continue if the US Federal Reserve delivers another rate cut this quarter.
According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, “MCX gold prices may extend gains toward Rs. 1,27,500 amid a weak rupee and strong international cues.”
Similarly, Rahul Kalantri of Mehta Equities sees immediate MCX support at Rs. 1,25,470-Rs. 1,24,580 and resistance at Rs. 1,27,900.
