Gold price today: MCX Gold rate at record high; silver prices also at fresh peak. What is boosting precious metals?
Gold price today: Gold rates soared to fresh record highs in the domestic futures market Monday morning, while silver, too, scaled a fresh peak supported by healthy spot demand and positive global cues.
Gold price today: Gold rates soared to fresh record highs in the domestic futures market Monday morning, while silver, too, scaled a fresh peak supported by healthy spot demand and positive global cues. MCX Gold for December 5 expiry hit its fresh record high of ₹78,260 per 10 grams, while MCX Silver for December 5 expiry rose to a fresh all-time high of ₹98,224 per kg in the morning session on Monday, October 21. MCX Silver for March 5, 2025, expiry hit an all-time high of ₹1,00,564 per kg mark.
In international markets, spot gold prices hit a record high of $2,725.81, and silver surged to a nearly 12-year peak level on escalating tensions in West Asia and uncertainty surrounding the US election 2024.
What is boosting precious metals?
A confluence of factors, such as geopolitical tensions, macroeconomic uncertainty, the stability of the dollar index, and interest rate reductions, is supporting precious metals.
According to Rahul Kalantri, VP of commodities at Mehta Equities, precious metals are being driven by the expectations of a potential rate cut from the US Federal Reserve in November, following mixed US economic data.
Moreover, Kalantri highlighted that Chinese economic data released on Friday exceeded expectations, limiting gains in the dollar index and bolstering the appeal of precious metals. The dollar index retreated from its near three-month highs.
Kalantri said rising tensions in West Asia and uncertainty surrounding the upcoming US Presidential elections have also contributed to the rally in gold and silver prices.
According to a Reuters report, "Israel prepared to attack sites linked to the financial operations of Lebanon's Hezbollah group and told people to leave those areas immediately."
The US election is a critical event that is influencing investor sentiment. According to media reports, the US presidential election is witnessing a close fight between former President Donald Trump and Vice President Kamala Harris.
Manoj Kumar Jain of Prithvifinmart Commodity Research pointed out that gold and silver showed solid strength in the last week after the ECB cut interest rates in its monetary policy meetings. Gold prices crossed $2,700 per troy ounce and hit life highs, and silver prices also hit a 12-year high in the international markets.
What should investors do?
According to Kalantri, the prospects for silver are brighter than those for gold.
"Gold has been rising for the last three months while silver has underperformed. We are much more bullish on silver. We suggest booking some profits in gold and buying silver. We might see silver touching the ₹1,05,000- ₹1,10,000 per kg mark by this Diwali," Kalantri said.
"Gold currently has support levels at $2,710-$2,680, with resistance at $2,742-$2,758. Silver has support at $33.40-$33 and resistance at $34.05-$34.35. In Indian rupees, gold has support at ₹77,400- ₹77,240 and resistance at ₹77,980- ₹78,200. Silver has support at ₹95,050- ₹94,350 and resistance at ₹96,280- ₹96,980," Kalantri said.
Jain expects gold and silver prices to remain positive this week amid volatility in the dollar index and geopolitical tensions.
"Gold has support at $2,722-2,704, while resistance at $2,750-2,774 per troy ounce and silver has support at $33.40-32.88, while resistance is at $34.40-35.00 per troy ounce in today’s session," said Jain.
"On MCX, gold has support at ₹77,240-76,800 and resistance at ₹78,220-78,700, while silver has support at ₹94,400-93,350 and resistance at ₹96,650-98,000. We suggest buying gold above ₹77,700 with a stop loss of ₹77,240 for the target of ₹78,500 and also suggest buying silver above ₹95,500 with a stop loss of ₹94,400 for the target of ₹98,000," said Jain.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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