Gold price today: Gold rates witnessed significant gains, surging to record highs of ₹77,641 per 10 grams in the domestic futures market Friday morning, boosted by positive global cues and healthy demand from the domestic spot markets. MCX Gold for December 5 expiry traded 0.62 per cent higher at ₹77,587 per 10 grams around 9:40 am.
Positive global cues influenced sentiment back home. In international markets, gold prices have risen over a per cent this month and traded near a record high on Friday, driven by uncertainty surrounding the US election 2024 outcome, tensions in West Asia and the expectations of further monetary easing. Spot gold hit a record high of $2,696.59 on Thursday.
While the dovish outlook of the US Federal Reserve and other major central banks, such as the European Central Bank (ECB), has been a key factor boosting gold prices lately, simmering tensions in West Asia and uncertainty surrounding the US election have further bolstered investors' interest in gold.
According to media reports, the US presidential election 2024 is witnessing a tight contest between former President Donald Trump and the current Vice President Kamala Harris.
On the geopolitical front, the end of the war in West Asia is still not in sight.
"Hamas leader Yahya Sinwar, who was a mastermind of last year's October 7 attack that triggered the Gaza war, has been killed by Israeli forces. Western leaders said his death offered an opportunity for the war to end, but Israeli Prime Minister Benjamin Netanyahu said it would continue," reported Reuters.
"Lebanon's Hezbollah militant group said it will escalate war with Israel while Iran also said "the spirit of resistance will be strengthened" after Hamas leader Hamas leader Yahya Sinwar was killed," Reuters reported.
Meanwhile, on expected lines, the ECB reduced rates for the third time this year on Thursday and said inflation in the eurozone was increasingly under control.
On the other hand, the US economic data showed the world's largest economy remains on a solid footing, prompting speculation that the Fed may ease interest rate cuts.
"Data showed US retail sales rose a stronger-than-expected 0.4 per cent last month after an unrevised 0.1 per cent gain in August. A separate report showed initial jobless claims dropped by 19,000 to a seasonally adjusted 241,000 last week," reported Reuters.
According to CME Group's FedWatch Tool, traders now see a 73.6 per cent chance of a 50 bps rate cut over the Fed's remaining two meetings in November and December this year.
Gold tends to gain during lower interest rates and economic and global uncertainty.
Jateen Trivedi, VP and Research Analyst - Commodity and Currency at LKP Securities, said the rally in gold is being driven by growing uncertainty in the returns of risky assets, making gold an attractive allocation for investors.
"The ongoing geopolitical tensions in West Asia, coupled with expectations of further interest rate cuts, continue to support the upward momentum in gold prices," said Trivedi.
"The precious metal has strong support near ₹76,300- ₹76,500 on MCX, which should provide a cushion during any minor corrections. On the upside, resistance is now seen extending toward ₹77,250- ₹77,450, with the potential for further gains if safe-haven demand persists. As global uncertainties remain elevated, gold could continue to see buying interest in the near term," Trivedi said.
According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has key support levels at $2,674-$2,660, with resistance at $2,712-$2,728. Silver has support at $31.62-$31.45, while resistance lies at $32.15-$32.37.
In the Indian rupee terms, Kalantri said gold has support at ₹76,900- ₹76,640 and resistance at ₹77,280- ₹77,500, while silver’s support is at ₹91,050- ₹90,350, with resistance at ₹92,280- ₹93,080.
Manoj Kumar Jain of Prithvifinmart Commodity Research underscored gold has support at $2,692-2,674, while resistance at $2,722-2,740 per troy ounce and silver has support at $31.50-31.20, while resistance is at $32.00-32.35 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹76,850-76,600 and resistance at ₹77,350-77,550, while silver has support at ₹91,100-90,450 and resistance at ₹92,400-93,000.
"We suggest buying gold on dips around ₹76,900 with a stop loss of ₹76,600 for the target of ₹77,500 and also suggest buying silver around ₹91,500 with a stop loss of ₹90,800 for the target of ₹93,000," said Jain.
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