Gold prices remained robust on the MCX, with October futures contracts holding steady at Rs 1,10,177 per 10 grams. This value maintains proximity to the lifetime high of Rs 1,10,330 reached in the previous trading session. The surge in gold prices can be attributed to several factors, including a weaker dollar, increased safe-haven demand, and rising expectations of a U.S. Federal Reserve interest rate cut anticipated this week.
In a similar vein, silver December futures opened at Rs 1,29,338 per kilogram, also maintaining close to its peak of Rs 1,29,622 reached earlier in the week. Both precious metals have been on an upward trajectory, buoyed by the same overarching market sentiments.
On the international front, gold prices attained a record high as of Tuesday, supported by the continued weakness of the dollar ahead of the highly anticipated Federal Reserve policy meeting. Spot gold prices rose by 0.1% to $3,680.17 per ounce, after hitting an earlier record of $3,689.27.
On the domestic markets, both gold and silver settled positively, with the October futures contract for gold closing at Rs 1,10,179 per 10 grams, reflecting a gain of 0.74%. Silver December futures also settled high at Rs 1,29,429 per kilogram, posting a gain of 0.46%. The recent gains have been amplified by declining confidence in the dollar and increasing safe-haven buying amidst ongoing geopolitical tensions, particularly in the Middle East and the ongoing Russia-Ukraine conflict.
Market analysts predict that gold could soon test the significant barrier of $3,800 per troy ounce, with silver potentially approaching $44.50 per troy ounce. According to Manoj Kumar Jain, a commodity market expert, the prices of both metals are being propelled by sustained investment demand and geopolitical concerns.
As the U.S. Dollar Index hovered near the 97.24 mark, experiencing a slight decline, market analysts remain cautious. Jain expects continued volatility in gold and silver prices this week due to fluctuations in the dollar index, ongoing geopolitical tensions, and the forthcoming Federal Open Market Committee (FOMC) meetings.
For those interested in trading, Jain has outlined some technical levels: Gold has support at Rs 1,09,850 to Rs 1,09,500 and resistance at Rs 1,10,580 to Rs 1,11,000. Silver has support between Rs 1,28,500 and Rs 1,27,700, with resistance projected at Rs 1,30,300 to Rs 1,31,500. Jain recommends buying gold at around Rs 1,09,800 with a target of Rs 1,10,650, while suggesting a buy for silver at Rs 1,28,800 for a target of Rs 1,30,300 to Rs 1,31,500.
Turning to physical markets, gold prices vary across major cities: in Delhi, standard gold (22 carat) is priced at Rs 57,208 for 8 grams, while pure gold (24 carat) stands at Rs 61,032 for the same quantity. In Mumbai, the prices are slightly higher at Rs 57,376 for standard gold and Rs 61,136 for pure gold. Chennai’s prices for standard gold are at Rs 57,064 and Rs 60,792 for pure gold, while Hyderabad sees similar pricing, with standard gold at Rs 57,240 and pure gold at Rs 60,992.
As the market continues to react to economic indicators and geopolitical events, expert opinions suggest that investors should remain vigilant and consider the outlined trading levels for optimal engagement with these precious metals.
