Gold price gain nearly Rs 900/10 gm: Here's what triggering gains

Gold prices towards the close of the morning session traded with significant gains of around 1 per cent at 75,840 or Rs 629 per 10 gm on the MCX. Similarly, following global cues, 24k gold in the domestic market quoted at Rs 77,510 per 10 gm, up as much as Rs 270 over the previous day's close.

Yesterday's Fed meeting minutes which were rather undecisive on interest rate trajectory going ahead with policymakers maintaining a different view.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities noted that Gold traded with strength as markets continued to factor in geopolitical tensions and dollar volatility.

While the broader bullish trend in gold remains intact, short-term uncertainty persists. At ₹75,900 on MCX, gold is slightly off its peak but significantly above the Rs 67,500 low seen during the Budget week. Investors are advised to adopt a SIP or dip-accumulation strategy for better portfolio management, rather than attempting to time the market at current elevated levels, added Trivedi.

Factors supporting gains in gold prices 

- The dollar index and the U.S. bond yields slipped from their highs amid Israel-Hamas ceasefire deal. 

- The U.S. housing data released on Tuesday was very disappointing as new home sales dropped 17.3 per cent in October month to 6,10,000 units due to higher mortgage rates and supported precious metals.

- Bitcoin prices corrected from their highs and dips to $92,000 a coin and supported gold and silver prices.

However, market anticipations that the Trump’s tariff plans could increase inflation and may be a cause of concern for the Fed for more rate cuts. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, U.S. GDP data and the U.S. core PCE price index data but it could hold its key support levels of $2,588 and $29.88 per troy ounce levels respectively on a weekly closing basis, added Manoj Jain- Commodities Expert at India Nivesh.

Gold has support at $2622-2604, while resistance at $2658-2680 per troy ounce and silver has support at $30.55-30.20, while resistance is at $31.10-31.40 per troy ounce in today’s session. At MCX gold is having support at 74850-74600 and resistance at 75500-75770 while silver is having support at 87650-86950 and resistance at 88900-89550. We suggest buying silver on dips around 87700 with a stop loss of 87150 for the target of 89000, he added.