Gold prices hit fresh all-time high of Rs 1,12,419/10 gms. Will Fed’s next move push it past Rs 1,13,000?
With today’s high, gold October futures have now soared over Rs 23,000 from their lifetime low of Rs 88,400 — marking a stunning rally driven by global uncertainty and investor confidence.
Silver December futures on MCX, on the other hand, started the day with a muted performance, trading at Rs 1,33,531/kg, 0.02% lower at Rs 24.
On Monday, gold and silver settled on a positive note in the domestic market and international markets. Gold October futures contract settled at Rs 1,12,230 per 10 grams with a gain of 1.17% and silver December futures contract settled at Rs 1,33,555 per kilogram with a gain of 2.86%.
Gold and silver extended their gains and set new records ahead of the Fed Chairman’s speech. Gold prices hit a life high and silver prices hit a 14-1/2 year high in the international markets, while both precious metals set new record highs in the domestic markets.
“The Fed cut interest rates by 25 basis points last week and the market is widely expecting 50 basis points more cuts by the end of this year,” noted Manoj Kumar Jain of Prithvifinmart Commodity Research.“Robust global central banks buying, increasing ETF inflow and safe-haven buying continue to support gold and silver prices. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the global financial markets and ahead of the U.S. core PCE price index data and gold are expected to trade in the range of $3,654-3,840 per troy ounce and silver is expected to trade in the range of $42.40-45.50 per troy this week,” he added.The dollar index is also not sustaining at higher levels and the rupee is weakening against major global currencies and supporting prices of gold and silver. Today, the US Dollar Index, DXY, was hovering near the 97.36 mark, gaining 0.03 or 0.03%.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,11,800-1,11,180 and resistance at Rs 1,12,800-1,13,300
- Silver has support at Rs 1,32,300-1,31,000 and resistance at Rs 1,34,500-1,36,000
Jain suggests buying gold around Rs 1,11,800 with a stop loss of Rs 1,11,180 for a target of Rs 1,13,000 and also suggests buying silver around Rs 1,32,500 with a stop loss of Rs 1,31,200 for a target of Rs 1,35,000.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 84,624/8 grams while pure gold (24 carat) prices stand at Rs 90,832/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 84,680/8 grams while pure gold (24 carat) prices stand at Rs 90,888/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 83,688/8 grams while pure gold (24 carat) prices stand at Rs 89,856/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 83,600/8 grams while pure gold (24 carat) prices stand at Rs 89,832/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)