Gold prices today shot up to all-time highs of ₹76,000 on safe-haven investment as the yellow metal had seen interest rate cuts in China, while geopolitical tensions also weighed in on a dovish US dollar. Gold prices on MCX today, traded 0.20% higher at ₹75,150 per 10 grams. Silver slipped 0.18% to ₹92,230 per kg.
International gold prices have also become historic as they crossed their previous all-time high of $2,665 an ounce. Silver surged 4.6% on Tuesday, the biggest one-day gain for four months. The MCX gold price has shown a remarkable increase of 4.74% in September so far.
Gold prices on MCX today are all-time high: But why?
The rising political tensions in the Middle East are also seeing the rise in gold prices. Weak US economic data has boosted the argument for deeper interest rate cuts by the Federal Reserve.
Analysts expect gold prices on MCX today will march up to ₹79,000 to ₹80,000 per 10 grams by the year-end. US Federal Reserve’s rate cuts, which are expected to continue, have cut down the yields of US Treasuries and made non-yielding assets like gold quite attractive.
Geopolitical tensions, especially between Israel and Hezbollah, are increasing demand for safe-haven assets such as gold. Strong central bank buying, especially from China, is supporting gold prices. Increasing inflows into gold exchange-traded funds (ETFs) are also supporting prices.
Gold will reach ₹80,000 by year-end, says Ajay Kedia, Director of Kedia Advisory. Meanwhile, the sharp surge in gold prices can be attributed to a 50-basis-point cut in interest rates by the US Fed, and the Fed is likely to cut interest rates another 100 basis points by year-end, added Jigar Trivedi, senior analyst at Reliance Securities.
Base concerns for a US economic slowdown or recession are fueling the bullish momentum in gold. Rahul Kalantri of Mehta Equities Ltd said international gold has support at $2,640 – $2,620, while resistance is seen at $2,674 – $2,690. For silver, Kalantri added that it has support at $31.75 – $31.50 and resistance is capped at $32.20 – $32.32.
Gold price today according to Indian background
And when seen from an Indian Rupee background, gold prices on MCX today have support at ₹74,850 – ₹75,670, with resistance standing at ₹75,290 – ₹75,550. Silver in INR terms has support at ₹91,450 – ₹90,750, with resistance at ₹92,680 – ₹93,380. The US dollar has weakened over 1% year-to-date, further supporting precious metal prices.
Trivedi expects the dollar’s weakness to continue, boosting gold prices today. The festival season buy may be limited in India due to high gold prices. This will be mitigated by political risks in the US and geopolitical risks in the Middle East. Analysts feel that on dips, gold should be bought in view of the overall bullish trend. There is a possibility of a technical pullback.
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