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On Tuesday, October 7, gold reached record highs in both domestic and global markets on the back of safe-haven buying and rising expectations for additional rate cuts by the US Federal Reserve this year.
On the Multi Commodity Exchange (MCX), Gold December futures touched a lifetime high of Rs. 1,20,800 per 10 grams, while Silver December futures hovered near record territory at Rs. 1,47,701 per kilogram. Gold was trading 0.43% higher at Rs. 1,20,769 per 10 grams, extending gains for a third straight session.
Internationally, spot gold climbed to an all-time high of $3,977.19 per ounce before easing slightly to $3,961.64, and US gold futures rose 0.2% to $3,985.50.
Analysts attribute the rally to persistent uncertainty in the US economy and political landscape, coupled with investor bets on two additional 25-basis-point rate cuts in October and December.
In Mumbai, gold prices witnessed a strong rise. The price of 24-carat gold climbed to Rs. 12,202 per gram, up Rs. 125 from the previous day’s rate of Rs. 12,077, while the 10-gram price rose to Rs. 1,22,020, marking an increase of Rs. 1,250.
The 22-carat gold price also moved higher, reaching Rs. 11,185 per gram from Rs. 11,070 a day earlier. The 10-gram rate advanced to Rs. 1,11,850, registering an increase of Rs. 1,150.
Similarly, in Chennai, gold prices continued their upward trajectory. The price of 24-carat gold rose to Rs. 12,218 per gram, compared to Rs. 12,137 on Monday, marking a gain of Rs. 81 per gram. The 10-gram rate climbed to Rs. 1,22,180, up by Rs. 810.
The 22-carat gold price also strengthened, moving to Rs. 11,200 per gram from Rs. 11,125 the previous day. The 10-gram rate advanced to Rs. 1,12,000, registering an increase of Rs. 750.
Also Read: Gold vs Stocks: Which Should You Choose This Diwali?
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support around Rs. 1,19,100-Rs. 1,18,000 and resistance near Rs. 1,21,000-Rs. 1,22,200 on the MCX. Silver support lies at Rs. 1,46,200-Rs. 1,45,000, with resistance around Rs. 1,48,800-Rs. 1,50,000.
Jain recommends buying silver near Rs. 1,47,000 with a stop-loss at Rs. 1,45,400 and a target of Rs. 1,50,000.
With investors looking for safety amid uncertainties across the globe and a dovish US Fed, analysts expect gold to remain firm in the near-term, and may hit Rs. 1,22,500 per 10 grams domestically if the international momentum carries on.
