Gold prices surge by Rs 6,500 in last 1 month to hit record high of Rs 1,07,807/10g. Time to book profit?

Gold October futures have rallied sharply, surging nearly Rs 6,500 in the last one month to hit a record high of Rs 1,07,807 per 10 grams on the Multi Commodity Exchange (MCX) on Friday.

The surge comes despite recent profit-taking ahead of key U.S. employment data, as global uncertainties and central bank demand continue to lend strong support to the yellow metal.

Gold and silver witnessed profit booking from record levels ahead of the U.S. employment report. Investors locked gains in both metals before the release of the non-farm payroll data.

While the dollar index continues to hover above the 98 mark, global uncertainties arising from U.S. trade tariffs and sustained central bank buying are lending support to precious metals.

The Federal Reserve’s expected rate cuts at its upcoming meeting have also added to bullish sentiment, as lower interest rates tend to make non-yielding assets like gold more attractive.

Jateen Trivedi, VP Research Analyst- Commodity and Currency, LKP Securities, said, “Investors remain focused on the Fed’s September meeting where rate cuts are anticipated, while ongoing tariff uncertainties are fueling safe-haven demand. Together, these factors continue to keep bullion in a bullish structure.”He believes that the broader setup for gold still remains positive as long as prices sustain above Rs 1,06,450, with strength expected to extend towards resistance near Rs 1,07,260.“A decisive break above this could open the path for further gains, while only a fall below Rs 1,06,150 would signal weakness,” he added.

Analysts remain cautiously optimistic as gold trades near its lifetime high. Strong central bank demand, expectations of a U.S. Federal Reserve rate cut, and geopolitical uncertainties are underpinning the rally.

Domestically, momentum on the Multi Commodity Exchange has been driven by investor flows into gold futures, with technical levels providing further support to prices.

As long as prices sustain above crucial thresholds, analysts believe the broader structure remains bullish, with resistance levels in sight that, if broken, could pave the way for fresh record highs.

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