Gold prices rally to new high past Rs 1.3 lakh ahead of Dhanteras, silver follows suit. Will the festive season take bullion higher?
Ahead of the auspicious occasion of Dhanteras, gold and silver prices continued their bull run, surging to their new peaks in early trade on Friday on the MCX. Gold December futures recorded a Rs 3,000 gain (2.2%) to their new all-time high of Rs 1,30,005/10 grams.
Silver December futures were also glittering as they zoomed to their new peak at Rs 1,67,999/kg.
Gold hit a fresh record on Friday, with signs of credit stress at U.S. regional banks putting investors on edge. The flight to safety saw gold hit a record of $4,378 per ounce, although it ran into some profit-taking and was last flat. Even so, the bullion is set for a weekly gain of 7.6%, its biggest since early 2020. Silver also hit a new peak.On Thursday, gold and silver settled on a positive note in the domestic and international markets. Gold December futures contract settled at Rs 1,29,852 per 10 grams with a gain of 2.08% and silver December futures contract settled at Rs 1,67,663 per kilogram with a gain of 3.36%.
Gold and silver extended their gains and hit fresh lifetime highs in the international and domestic markets. Gold prices closed above $4,300 per troy ounce and silver prices closed above $53 per troy ounce for the first time in the international markets and continuing their bullish momentum.
The dollar index extended its fall, the US 10-year bond yields slipped below 4.0% and a sell-off in Crypto assets supported gold and silver prices. The Fed rate cut possibilities are also fueling gold and silver prices.
“Global central banks and ETF investors are continuously pumping their money into safe-haven buying and supporting the uptrend. Gold prices could test $4,890 and silver prices could also test $65 in the longer term,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Today, the US Dollar Index, DXY, was hovering near the 98.19 mark, falling 0.15 or 0.15%.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,28,000-1,26,600 and resistance at Rs 1,31,000-1,33,500
- Silver has support at Rs 1,66,000-1,64,400 and resistance at Rs 1,69,200-1,71,000
Jain suggests buying gold and silver on dips in a staggered way and avoiding short selling in the current market conditions. Gold is likely to test Rs 1,31,000 and silver could also test Rs 1,71,000.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 97,752/8 grams while pure gold (24 carat) prices stand at Rs 1,05,208/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 96,952/8 grams while pure gold (24 carat) prices stand at Rs 1,04,400/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 96,728/8 grams while pure gold (24 carat) prices stand at Rs 1,04,144/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 96,712/8 grams while pure gold (24 carat) prices stand at Rs 1,04,072/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)