Gold price today: Gold rates soared to fresh record highs in the domestic futures market Monday morning, while silver, too, scaled a fresh peak supported by healthy spot demand and positive global cues. MCX Gold for December 5 expiry hit its fresh record high of ₹78,240 per 10 grams, while MCX Silver for December 5 expiry rose to a fresh all-time high of ₹98,224 per kg in the morning session on Monday, October 21.
In international markets, spot gold prices hit a record high of $2,725.81, and silver surged to a nearly 12-year peak level on escalating tensions in West Asia and uncertainty surrounding the US election 2024.
What is boosting precious metals?
A confluence of factors, such as geopolitical tensions, macroeconomic uncertainty, the stability of the dollar index, and interest rate reductions, is supporting precious metals.
According to Rahul Kalantri, VP of commodities at Mehta Equities, precious metals are being driven by the expectations of a potential rate cut from the US Federal Reserve in November, following mixed US economic data.
Moreover, Kalantri highlighted that Chinese economic data released on Friday exceeded expectations, limiting gains in the dollar index and bolstering the appeal of precious metals. The dollar index retreated from its near three-month highs.
Kalantri said rising tensions in West Asia and uncertainty surrounding the upcoming US Presidential elections have also contributed to the rally in gold and silver prices.
According to a Reuters report, “Israel prepared to attack sites linked to the financial operations of Lebanon’s Hezbollah group and told people to leave those areas immediately.”
The US election is a critical event that is influencing investor sentiment. According to media reports, the US presidential election is witnessing a close fight between former President Donald Trump and Vice President Kamala Harris.
What should investors do?
According to Kalantri, the prospects for silver are brighter than those for gold.
“Gold has been rising for the last three months while silver has underperformed. We are much more bullish on silver. We suggest booking some profits in gold and buying silver. We might see silver touching the ₹1,05,000- ₹1,10,000 per kg mark by this Diwali,” Kalantri said.
“Gold currently has support levels at $2,710-$2,680, with resistance at $2,742-$2,758. Silver has support at $33.40-$33 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,” Kalantri said.