Gold price today: The rates of gold and silver surged to fresh record highs on the MCX in Thursday’s session, driven by positive global cues, strong domestic demand, and the dollar’s weakness.
MCX Gold December futures jumped by nearly ₹1,200, or 1 per cent, to hit a new high of ₹1,28,395 per 10 grams, while MCX Silver December futures rose by nearly ₹2,500, or 1.5 per cent, to a fresh peak of ₹1,64,660 per kg. Around 9:30 am, MCX Gold was 0.60 per cent up at ₹1,27,960 per 10 grams, and MCX Silver was 1 per cent up at ₹1,63,812 per kg.
International gold prices reached a new record high on Thursday, driven by strong investor demand for the yellow metal amid a weaker dollar, persistent geopolitical and economic concerns, and expectations of US Fed rate cuts.
The US dollar index declined by nearly 0.40 per cent due to political and economic uncertainties in the world’s largest economy, making dollar-priced yellow metal cheaper in overseas currencies.
The federal government shutdown is now in its second week.
The recent escalation of trade tensions between the US and China has heightened economic uncertainties, prompting investors to seek safe-haven assets.
According to Reuters, US officials on Wednesday signalled “potential retaliatory measures against China as they criticised Beijing’s expanded rare earth export controls, terming them as a threat to global supply chains.”
Experts say that if the trade tussle between the US and China persists, it will have a serious negative impact on global economic growth.
Gold prices tend to rise during economic downturns.
“Gold prices remain elevated at record levels, driven by expectations of more interest rate cuts from the US Federal Reserve and ongoing tensions between the US and China. The futures market now anticipates a larger rate cut from the Fed, possibly in October or December, which could give gold prices another boost,” said Darshan Desai, CEO of Aspect Bullion and Refinery.
“Gold is also likely to remain a safe-haven asset, supported by concerns over rising and potentially unsustainable debt levels, a weakening US dollar, and continued buying by central banks,” said Desai.
What should investors do?
While the medium- to long-term outlook for gold and silver remains bright, experts expect them to remain volatile in the near term due to news flows surrounding US-China tariffs and the movement of the dollar.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the global financial markets and the US-China trade conflicts. Gold is expected to trade in the range of $3,980 and $4,280 per troy ounce, and silver is expected to trade in the range of $48.50 and $53.50 per troy ounce this week,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Jain said gold has support at $4,184 and $4,140, while resistance is at $4,240 and $4,264 per troy ounce, while silver has support at $50.80 and $50.35, while resistance is at $51.85 and $52.50 per troy ounce in today’s session.
MCX Gold has support at ₹1,26,000 and ₹1,24,400, and resistance is at ₹1,28,500 and ₹1,30,000, while silver has support at ₹1,60,600 and ₹1,59,000 and resistance is at ₹1,64,000 and ₹1,66,500.
“We suggest buying gold between ₹1,27,000 and ₹1,25,500 with a stop loss of ₹1,24,000 for the target of ₹1,28,500 and ₹1,30,000, and also buying silver between ₹1,62,000 and ₹1,59,500 with a stop loss of ₹1,57,700 for the target of ₹1,64,000 and ₹1,66,500,” said Jain.
According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $4,170 and $4,140, while resistance is at $4,255 and $4,270. Silver has support at $52.60 and $51.90, while resistance is at $53.35 and $53.80.
In INR, Kalantri said gold has support at ₹1,26,470 and ₹1,25,580, while resistance is at ₹1,27,850 and ₹1,28,500. Silver has support at ₹1,60,950 and ₹1,59,150, while resistance is at ₹1,63,850 and ₹1,64,950.