Home / Markets / Commodities /  Gold prices today surge to record high for second day, silver above 70,000

Gold extended gains to hit fresh highs in Indian markets. On MCX, futures rose 0.35% to 56517 per 10 gram, surpassing previous high of 56,370, hit on Friday. Silver also firmed with futures rising 0.75% to 70,000 per kg level.  Gold rates have been on a upward trend since November, as a softer dollar and expectations of slower interest rate hikes from the US Federal Reserve added to bullion's shine. In global markets, spot gold was up 0.3% to nine-month high of $1,926.07 per ounce. The dollar index today further slipped 0.3%, making dollar-priced gold a more attractive bet.

Investors will also keep an eye out for the US retail sales data due on Wednesday.

“COMEX Gold rose for the fourth week in a row, to a nine-month high of $1,925 per troy ounce in the previous week, underpinned by sharp plunge in dollar index and weakness in US treasury yields. Bullish sentiment in gold has also been supported by reports that China has boosted gold reserves for a second consecutive month. US Retail sales along with some housing data and Bank of Japan monetary policy meeting will be in the spotlight for the week," said Ravindra V. Rao, VP-Head Commodity Research, Kotak Securities. 

"Dollar weakness might persist, as market participants are ramping up bets that the Bank of Japan will exit its ultra-dovish stance as inflation accelerates and is expecting some policy tweaks. Overall trajectory remains on the upside for gold, amid the backdrop of deteriorating global economy and a looming recession and stagflation risks," he said. 

A survey on Friday showed .U.S. consumers are becoming more confident that price pressures will ease considerably over the next 12 months, their one-year inflation expectations falling in January to the lowest level since the spring of 2021.

“Gold and silver prices rose on Friday after U.S. Treasury Secretary Janet Yellen said the U.S. would likely hit its statutory debt limit on January 19, which triggered some renewed safe-haven demand for the precious metals. In the domestic market, gold prices hit lifetime highs and closed above 56,300 levels. Gold and silver extended gains last week due to cooling inflation in the U.S. and weakness in the dollar index. The dollar index slipped to seven month low. The U.S. 10-year bond yields also slipped below 3.50% amid expectations of a slower pace of U.S. Fed rate hikes," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“We expect gold and silver to remain volatile in today’s session. Gold has support at $1895-1882 while resistance at $1934-1944. Silver has support at $23.92-23.65, while resistance is at $24.50-24.72. In rupee terms gold has support at 56,050-55,780, while resistance is at 56,510-56,650. Silver has support at Rs68,950-68,420, while resistance is at 69,920–70,680," he said. 

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