Gold and silver prices surged Thursday morning, driven by a slight easing of the US dollar and treasury yields from their recent highs.
The decline in benchmark 10-year US treasury yields to 4.22% and a relatively flat US dollar near its three-month peak created an environment conducive to gains in precious metals.
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As of 9:15 a.m., the December 5 expiry of MCX Gold was up 0.20%, trading at Rs 77,965 per 10 grams. Meanwhile, MCX Silver showed a 0.49% increase, reaching Rs 97,439 per kilogram.
This follows a period of high volatility in the previous session, where both gold and silver hit fresh record highs before seeing strong profit bookings.
MCX Gold had touched Rs 78,919 per 10 grams but closed lower at Rs 77,868, while MCX Silver reached an all-time high of Rs 1,00,081 per kg before settling at Rs 97,052.
In international markets, spot gold prices also saw an uptick, supported by safe-haven demand amidst rising geopolitical tensions and uncertainties surrounding the upcoming US presidential election.
The gains were somewhat tempered by the strengthening of the US dollar. Spot gold prices reached a high of $2,758.37 on Wednesday, reflecting the broader market’s apprehensions over global instability.
According to Manav Modi, Senior Analyst at Motilal Oswal Financial Services, “Gold and silver prices saw some correction in the previous session due to profit booking after reaching all-time highs.
Both metals are trading steadily today, as persistent tensions in the Middle East and uncertainty around the US elections continue to fuel safe-haven demand.”
Adding to the global market, uncertainties are reports of escalating geopolitical conflict in the Middle East. Israeli airstrikes have targeted Beirut, with Hezbollah responding by launching precision-guided missiles at Israeli targets.
These developments will likely keep demand for safe-haven assets like gold elevated in the coming days.
On the domestic front, gold and silver rates remain resilient, driven partly by India’s ongoing festive and wedding season, which traditionally boosts demand.
Retail prices for gold in major Indian cities reflect this trend, with 24-carat gold priced at approximately Rs 80,080 per 10 grams and 22-carat gold at around Rs 73,410 per 10 grams. The festive demand and the global market factors suggest continued strength in bullion prices.
Commodity experts have weighed in on the immediate future of gold and silver. Rahul Kalantri, VP of Commodities at Mehta Equities, noted that gold has support at $2,710-$2,688 and resistance at $2,740-$2,755. For silver, the support levels are at $33.40-$33, while resistance is projected at $33.98-$34.25.
In India, gold has support around Rs 77,550-Rs 77,340, with resistance at Rs 78,060-Rs 78,240. Silver’s support is seen near Rs 96,240-Rs 95,550, while resistance stands at Rs 97,980-Rs 98,750.
Meanwhile, Manoj Kumar Jain of Prithvifinmart Commodity Research echoed similar sentiments, predicting volatility in precious metals this week, influenced mainly by fluctuations in the dollar index and geopolitical tensions.
He expects gold to find support at $2,704-$2,688, with resistance near $2,744-$2,762 per troy ounce. Silver’s support levels are projected at $33.40-$32.88, while resistance is estimated at $34.30-$34.80.
For the Indian markets, MCX Gold is expected to see support at Rs 77,480-Rs 77,200, with resistance at Rs 78,140-Rs 78,500.
Silver is likely to find support near Rs 96,100-Rs 95,200, while resistance may be encountered between Rs 97,750-Rs 98,800. Jain advises traders to consider booking profits at higher levels and look for corrective dips to initiate new long positions in both gold and silver.
Retail gold prices in India on October 24 saw a continuation of the strong upward trend, with the cost of 24-carat gold at Rs 80,080 per 10 grams. For 22-carat gold, commonly purchased for jewellery, prices hovered around Rs 73,410 per 10 grams. Silver, meanwhile, was trading at Rs 1,02,100 per kilogram.
City-wise breakdowns showed similar price movements, with gold in Delhi priced at Rs 73,560 for 22-carat and Rs 80,230 for 24-carat.
Mumbai, Ahmedabad, Chennai, Kolkata, and other major cities saw 22-carat gold at Rs 73,410 and 24-carat gold at Rs 80,080 per 10 grams, in line with the broader market trend.
With the upcoming US presidential election and continued geopolitical turmoil, the market outlook for gold and silver remains closely tied to these macroeconomic factors.
Traders and investors will be closely monitoring further developments in the Middle East and US monetary policy, which could drive price fluctuations in the coming days.
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