Gold rates jump to record high on MCX; silver surges 4% on increased Fed rate-cut bets, rising US-Venezuela tension

Gold price today: The rates of gold rose by more than half a per cent while those of silver jumped 4% in morning trade on the MCX on Friday, December 26, on rising speculations of further rate cuts by the US Federal Reserve in January. Rising tensions between the US and Venezuela are also driving gold prices higher.

MCX gold February futures rose by 0.65% to hit a record high of ₹1,38,994 per 10 grams, while MCX silver March futures surged 4% to a record high of ₹2,32,741 per kg on Friday. Around 9:15 am, MCX gold was 0.58% up at ₹1,38,904 per 10 grams, while MCX silver was 3.70% up at ₹2,32,068 per kg.

International gold prices are also surging. US gold futures February contracts rose by 0.7% to a record high of $4,533.60 per ounce, driven by safe-haven demand amid mounting geopolitical tensions as well as expectations of US interest rate cuts.

Jigar Trivedi, Senior Research Analyst at Reliance Securities, underscored that the ongoing US blockade of crude shipments from Venezuela, continued hostilities between Russia and Ukraine, and a recent military strike by Washington against ISIS in Nigeria have increased geopolitical tensions, thereby supporting gold prices.

Trivedi added that the rate cut hopes are also favouring the bullion process. Markets are pricing in two quarter-point rate cuts by the Fed next year as inflation cools and labour market conditions soften.

Key levels to watch

According to Trivedi, MCX gold February futures are likely to stay positive, and ₹1,39,000 per 10 grams is the next resistance for today.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold to trade in the range of $4,440 and $4,580 per troy ounce and silver to trade in the range of $68.80 and $75.00 per troy ounce in today’s session.

Jain said gold has support at $4,472 and $4,440, while resistance is at $4,555 and $4,580 per troy ounce. Silver has support at $70.00 and $68.80, while resistance is at $73.40 and $75.00 per troy ounce in today’s session.

On the MCX, gold has support at ₹1,37,200 and ₹1,36,600 and resistance is at ₹1,38,850 and ₹1,39,500, while silver has support at ₹2,21,750 and ₹2,19,500 and resistance is at ₹2,26,000 and ₹2,28,800, said Jain.

"We suggest buying gold around ₹1,37,400 and ₹1,36,600 with a stop loss below ₹1,35,800 for the target of ₹1,40,000 and also suggest buying silver around ₹2,22,000 and ₹2,20,000 with a stop loss of ₹2,17,000 for the targets of ₹2,26,000 and ₹2,28,800," Jain said.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $4,415 and $4,385 while resistance is at $4,515 and $4,550. Silver has support at $70.80 and $69.75, while resistance is at $72.65 and $73.30.

In INR, Kalantri said gold has support at ₹1,36,550 and ₹1,35,710 while resistance is at ₹1,38,850 and ₹1,39,670. Silver has support at ₹2,22,150 and ₹2,20,78,0 while resistance is at ₹2,25,810 and ₹2,26,970.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.