Precious metal prices: Gold prices scale to a record high of Rs 78,260 per 10 gm; silver zooms Rs 2,500 per kg
Gold prices have been scaling new highs amid escalating geo-political tensions and central banks' rate-cut spree
Gold rate today: Gold prices zoomed to a fresh high on October 21 as Middle East tensions fuelled demand for the asset as a safe haven. Mirroring gains in the international markets, gold on the MCX today hit a new high of Rs 78,260 per 10 gm. In the previous session, the yellow metal closed at Rs 77,749 per 10 gm.
Gold price on COMEX
On the Comex, gold prices are trading up by 0.5 per cent or $13.4 at $2,743. 5 per ounce.
Rate cut by central banks pushing gold to record highs
Gold and silver demonstrated strong performance over the past week following the European Central Bank's decision to cut interest rates in its recent monetary policy meeting. Gold prices surged past $2,700 per troy ounce, reaching all-time highs, while silver prices hit a 12-year peak in international markets. These gains were further supported by expectations of a potential rate cut from the U.S. Federal Reserve in November, following mixed U.S. economic data.
China's rate cut of a higher than expected quantum raised bullion's appeal
Chinese economic data, released on Friday, also exceeded expectations, which limited gains in the dollar index and bolstered the appeal of precious metals.
Decline in the dollar index also provided support to gold, silver
The dollar index retreated from its near three-month highs. At the last count, the DXY was down marginally at 103.49
Rising geo-political tensions and upcoming US elections also aid gains
The rising tensions in the Middle East and uncertainty surrounding the upcoming U.S. Presidential elections have contributed to the rally in gold and silver prices.
MCX Silver up over 2 per cent
Amid rate cut by China, silver MCX (December) was up 2.35 per cent or Rs 2,242 per kg at Rs 97,644 per kg. While today, it marked a high of Rs 98,224 per kg.
Gold and silver's support and resistance levels
Rahul Kalantri, VP Commodities, Mehta Equities said, "Gold currently has support levels at $2,710-$2,680, with resistance at $2,742-$2,758. Silver is seeing support at $33.40-$33.00 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.
Gold and silver- Near term price outlook
Dr. Renisha Chainani, Head Research - Augmont - Gold For All is of the view that gold still has steam left to rise towards $2800 (~Rs 80000) in the next 15 days due to safe-haven buying amid geopolitical uncertainty, US election jitters in the first week of November and festive buying ahead of Dhanteras and Diwali in India.
Silver prices are sustaining above $33 (~Rs 95000), and it is likely to touch the next psychological target of $35 (~Rs 100,000) very soon, before heading for a correction.