Gold price top Rs 1.20 lakh, eye uncharted territory as Goldman raises target to $4,900, China ramps up buying
Silver prices too inched higher, with December futures quoting at Rs 1,47,610 per kilogram.
According to a Reuters report, China’s gold holdings totalled 74.06 million fine troy ounces at the end of September, up from 74.02 million in the previous month, as the central bank expanded bullion purchases for the 11th straight month.
The monetary value of China’s gold reserves increased to $283.29 billion at the end of last month from $253.84 billion before, data from the People’s Bank of China showed on Tuesday.
Another report from the agency claimed that Goldman Sachs on Monday raised its December 2026 gold price forecast to $4,900 per ounce from $4,300 per ounce, citing strong Western ETF inflows and likely central bank buying.
“We see the risks to our upgraded gold price forecast as still skewed to the upside on net, because private sector diversification into the relatively small gold market may boost ETF holdings above our rates-implied estimate,” Reuters said, quoting Goldman Sachs.On Monday, gold and silver settled on a positive note in the domestic market and international markets. Gold December futures contract settled at Rs 1,20,249 per 10 grams with a gain of 1.81% and silver December futures contract settled at Rs 1,47,519 per kilogram with a gain of 1.22%.Gold and silver started the new week with solid gains, and both precious metals hit fresh record highs. Gold prices hit a lifetime high and are inching closer to $4,000 per troy ounce, while silver is marching towards its lifetime high of $50 per troy ounce in the international markets.
“Solid demand from the ETF investors in gold and silver is supporting prices. Gold ETF buying surged 17% year to date and silver demand surged 16% year to date amid robust investor inflows,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
The possibility of two more rate cuts of 25 basis points each this year by the U.S. Fed is also supporting the prices of gold and silver.
“However, rebound in the dollar index and uncertainty due to the U.S. shutdown could trigger some profit taking at higher levels,” Jain added.
Today, the US Dollar Index, DXY, was hovering near the 98.17 mark, gaining 0.07%.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,19,100-1,18,000 and resistance at Rs 1,21,000-1,22,200
- Silver has support at Rs 1,46,200-1,45,000 and resistance at Rs 1,48,800-1,50,000
Jain suggests buying silver around Rs 1,47,000 with a stop loss of Rs 1,45,400 for a target of Rs 1,50,000.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 89,888/8 grams, while pure gold (24 carat) prices stand at Rs 96,680/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 90,824/8 grams while pure gold (24 carat) prices stand at Rs 97,616/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 89,816/8 grams, while pure gold (24 carat) prices stand at Rs 96,512/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 89,824/8 grams, while pure gold (24 carat) prices stand at Rs 96,624/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)