Home / Markets / Commodities /  Gold prices up 6,000 in less than 3 months, hit another record high today

Gold prices today hit yet another record high today in Indian futures markets, supported by firm global rates. On MCX, gold futures rose 0.3% to 56,850 per 10 gram at day's high while silver edged higher to 68,743 per kg. Bullion has been rallying since early November on declines in the dollar and Treasury yields, spurred by expectations that Fed will turn less hawkish. Since the start of November, gold is up about 6,000 in less than three months. 

Gold has also been supported by heightened concerns of a recession. In international markets, spot gold was flat at $1,932.50 an ounce.

After recent signs of cooling inflation in US, the Street is pricing in a smaller 25-basis-point interest rate increase by the Federal Reserve at the end of its two-day meeting on February 1. Gold tends to gain when rate hike expectations recede because lower rates reduce the opportunity cost of holding non-yielding bullion.

But many Fed policymakers have recently signalled they will push on with more interest rate hikes to curtail inflation despite signs the economy is slowing. Among other precious metals, silver gained 0.6% to $23.98 per ounce while platinum edged up 0.1% to $1,033.69 and palladium lost 1% to $1,736.35.

Gold and silver prices jumped on Thursday after US retail sales data came in weaker than expected, which revived notions the US economy could slip into recession in 2023. Bullion is headed for a fifth consecutive week of gains amid resurgent safe haven demand and growing uncertainty over the path of U.S. monetary policy," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“Prices of the precious metal surged from their low, rallying in tandem with a sharp drop in stock markets as weak corporate earnings and softer-than-expected economic data raised concerns over a looming economic slowdown. Gold has support at $1912-1898 while resistance is at $1940-1951. Silver has support at $23.65-23.48, while resistance is at $24.10-24.28. In rupee terms gold has support at 56,510-56,380, while resistance is at 56,940, 57,140. Silver has support at 68,050-67,520, while resistance is at 68,950–69,580," he added. (With Agency Inputs)

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