Prices for gold in India reached new heights on Friday, 18 October, when it accelerated its rise due to global influences. Domestic markets also reflected the increase in gold prices, which reached Rs 77,641 for 10 grams in the futures market at the MCX.
The December contract increased by 0.62%, reaching a price of Rs 77,587 for 10 grams. This rise is attributed to the high demand in spot markets and positive global signals.
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Global Market Impact
In the global market, gold is seeing an increase in value. It is currently trading close to an all-time high. This week, the spot value of gold climbed to $2,696.59 an ounce, making it an asset that can be used to protect yourself from the uncertainty of economic and geopolitical tensions.
Many current rises can be traced to the unresolved conflict within West Asia. These ongoing conflicts, specifically in the region between Israel and Hezbollah, are causing increased demand for assets like gold, which are perceived to be solid during times of global turmoil.
Investors are watching the US elections 2024, which has added a new element of uncertainty to the market.
Another important factor behind gold’s steady growth is the more dovish attitude of the major central banks, such as those of the US Federal Reserve and the European Central Bank (ECB).
The prospect of loosening monetary policy in the coming months has encouraged investors to look for gold, which generally enjoys a low-interest rate environment.
Gold Prices Across Major Indian Cities
In Delhi, the capital city of India, gold hit an all-time high of Rs 78270 per 10 grams for 24-carat gold on a Friday. The 22-carat variation also increased to Rs 71,760 per gram.
In the meantime, Mumbai, Chennai, and Kolkata saw similar developments, and prices for 24-carat gold ranged from Rs 78,120 for 10 grams for each city.
Silver Prices Stay Steady
Although gold is on an upward trend, silver has been relatively stable, with slight changes in its value. In the country’s markets, silver dropped by about 200 rupees per kilogram in Delhi.
It remained flat at Mumbai in Mumbai and Kolkata. On Friday, the silver market was sold at Rs 96,900 for a kilogram in these cities, and Chennai had a price higher of Rs 1,02,900 per kilo.
The global silver market witnessed a slight price rise, trading at $31.94 per ounce after hitting $31.98 earlier during the week.
Investors’ sentiment towards silver is still cautious as they await further economic indicators, particularly from China, that could affect the demand for industrial products.
Key Market Levels to Watch
The experts say that gold will likely remain upward, and support levels will range from Rs 76,850 to Rs 76.600 on MCX.
The resistance for the metal is expected to be around Rs 77,550, and there is a chance of gains in the event of geopolitical tensions. Analysts advise buying gold during lows, focusing on levels of Rs 77,500.
Silver has a support of around Rs 91,050 to Rs 90,350 per kilo, and resistance can be seen at the Rs 92,280 and Rs 93.080 levels. As global uncertainty continues to loom, the precious metals silver and gold will likely remain appealing to investors.
On 18 October, the two precious metals were at the forefront, indicating the ongoing demand for safe assets in the uncertain global environment.
Investors will be keeping an eye out for any changes, especially in the geopolitical realm, which could drive up the prices of these commodities.
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