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Gold prices surged to new record highs on the Multi-Commodity Exchange (MCX) on Wednesday, December 24, driven by expectations of further interest rate cuts by the US Federal Reserve, a softer dollar, and rising geopolitical tensions.
MCX gold February futures climbed to a fresh peak near Rs. 1,38,469 per 10 grams, while silver March contracts jumped close to Rs. 2,23,742 per kg, marking new all-time highs.
The surge comes amid expectations that easing inflation and cooling labour market conditions in the US could prompt additional rate cuts next year, reducing the opportunity cost of holding non-yielding assets like gold.
Mirroring the international prices, Gold prices increased in Mumbai. 24K gold rose to Rs. 13,893 from yesterday’s Rs. 13,855 per gram. The price for 10 grams of 24K gold has also increased to Rs. 1,38,930 from Rs. 1,38,550.
Similarly, 22K gold prices have also risen to Rs. 12,735 per gram from Rs. 12,700; the cost for 10 grams of 22K gold has risen to Rs. 1,27,350 from Rs. 1,27,300.
As in Mumbai, gold prices in Delhi also increased. 24K gold price per gram trades at Rs. 13,908 from the previous price of Rs. 13,870. The rate for 10 grams of 24K gold rose to Rs. 1,39,080 from Rs. 1,38,700.
Gold price in the global market crossed $4,500 per ounce for the first time, strong safe-haven flows being the key driver for the increase. US gold futures also set records, reflecting growing investor confidence.
Silver price followed gold, and it also reached new all-time highs largely due to the demand for safe-haven and good industrial consumption.
In international markets, gold saw a 72% growth this year, while the silver price increased at 149%.
One of the leading factors in this trend was a decline in the value of the US dollar, which made gold a cheaper product for foreign buyers. Besides, there were geopolitical tensions, especially the worries concerning energy supply interruptions, which further supported the prices.
Also Read: XRP Slips Near Resistance as Traders Track Gold Ratio Retest
Gold has support at $4,480 and $4,434 per troy ounce, while resistance is located at $4,535 and $4,580. Silver has support at $70.00 and $67.70, while resistance is at $72.70 and $74.00 per troy ounce.
On MCX, gold has support at Rs. 1,36,660 and Rs. 1,35,800 and resistance is at Rs. 1,38,850 and Rs. 1,40,000,
while silver has support at Rs. 2,17,700 and Rs. 2,16,000 and resistance is at Rs. 2,22,000 and Rs. 2,25,000.
