Gold prices pull back, analysts flag risks near Rs 1.25 lakh

Gold and silver prices opened slightly lower on Thursday, with gold futures trading at Rs 1,22,700 per 10 grams and silver at Rs 1,48,423 per kilogram on the MCX. The minor pullback comes amid global volatility and profit-booking, following bullion’s strong rally to record highs earlier this week.

Despite the dip, both precious metals remain firmly near lifetime peaks, supported by expectations of U.S. rate cuts, central bank buying, and steady safe-haven demand.

In international markets, gold eased as investors booked profits a day after bullion breached the crucial $4,000-per-ounce mark, hitting a record high amid economic and geopolitical uncertainties and hopes of additional U.S. interest rate cuts.

Spot gold fell 0.4% to $4,021.99 per ounce as of 0117 GMT, after touching a record $4,059.05 on Wednesday.

U.S. gold futures for December delivery declined 0.7% to $4,042.60.

On Wednesday, both gold and silver ended higher in domestic and international markets. The December gold futures contract settled at Rs 1,23,209 per 10 grams, up 1.73%, while silver December futures closed at Rs 1,49,855 per kilogram, up 2.79%.Gold and silver saw significant gains in a highly volatile session. Gold prices crossed $4,050 per troy ounce for the first time, while silver surpassed $49 per troy ounce for the first time since 2011. Robust central bank buying and a shift of global investors toward safe-haven assets via ETFs continue to support prices. However, the Fed meeting minutes fueled uncertainty over aggressive rate cuts, and a stronger dollar limited further gains.“Some profit-taking in gold and silver is evident at current levels, but it could be seen as a buying opportunity from a longer-term perspective,” said Manoj

Kumar Jain of Prithvifinmart Commodity Research.

He added, “We expect gold and silver to remain volatile this week amid dollar index fluctuations and global market volatility. Gold is expected to trade between $3,910–4,140 per troy ounce, and silver between $45.90–50.00 per troy ounce.”

As of today, the US Dollar Index (DXY) hovered near 98.72, down 0.20 points (0.20%).

-Gold: Support at Rs 1,22,400–1,21,650 | Resistance at Rs 1,24,000–1,24,800

-Silver: Support at Rs 1,48,500–1,47,000 | Resistance at Rs 1,51,500–1,52,800

Jain recommends waiting for corrective dips to initiate fresh long positions in gold and silver, while avoiding short selling.

– Delhi: Standard (22 carat) Rs 92,560/8g | Pure (24 carat) Rs 99,608/8g

– Mumbai: Standard Rs 92,720/8g | Pure Rs 99,696/8g

– Chennai: Standard Rs 91,960/8g | Pure Rs 98,832/8g

– Hyderabad: Standard Rs 92,224/8g | Pure Rs 99,136/8g

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)