Gold prices remained stable at Rs 1,10,177 per 10 grams on the October futures contract, maintaining proximity to their all-time high of Rs 1,10,330, reached in the prior trading session. The precious metal has experienced a remarkable surge in recent sessions, bolstered by a depreciating dollar, heightened safe-haven demand, and increasing anticipations of a U.S. Federal Reserve rate cut this week. Reflecting a comparable sentiment, silver December futures contracts at Rs 1,29,338/kg, maintaining proximity to the peak of Rs 1,29,622, which was also reached during Monday’s session.
In the international market, gold prices attained a record high on Tuesday, bolstered by a depreciating dollar in anticipation of the Federal Reserve’s policy meeting this week, during which the central bank is largely anticipated to implement a reduction in interest rates. Spot gold increased by 0.1% to $3,680.17 per ounce as of 0109, following a peak of $3,689.27 earlier in the session. On Tuesday, gold and silver concluded the trading session on a positive note in both the domestic and international markets. The October futures contract for gold concluded at Rs 1,10,179 per 10 grams, reflecting an increase of 0.74%. Meanwhile, the December futures contract for silver settled at Rs 1,29,429 per kilogram, marking a gain of 0.46%. Gold and silver continued to rise, buoyed by a decline in the dollar index and heightened expectations for aggressive rate cuts from the U.S. Federal Reserve following underwhelming U.S. economic data. Gold prices surpassed $3,700 per troy ounce, reaching a new record high, while silver prices also achieved a fresh 14-year high in international markets.
“Both precious metals are currently experiencing record levels in the domestic markets. “Safe-haven buying, geopolitical tensions and upbeat investment demand continue to support gold and silver prices,” stated Manoj Kumar Jain. “After crossing a $3,700 barrier, gold is poised to test $3,800 per troy ounce levels soon and silver is also heading for $44.50 per troy ounce levels,” he added. Moreover, the ongoing tensions in the Middle East and the escalation of the Russia-Ukraine conflict are contributing to the rise in precious metals prices. Today, the US Dollar Index was hovering near the 97.24 mark, falling 0.06 or 0.06%. Gold and silver prices are anticipated to exhibit volatility this week, influenced by fluctuations in the dollar index, ongoing geopolitical tensions, and the upcoming FOMC meetings.
Gold is anticipated to fluctuate between $3,534 and $3,800 per troy ounce, while silver is projected to range from $41.40 to $44.50 per troy ounce this week, Jain noted. Manoj Kumar Jain proposed the subsequent ranges for gold and silver. Gold exhibits support levels at Rs 1,09,850-1,09,500, while resistance is observed at Rs 1,10,580-1,11,000. Silver exhibits support levels in the range of Rs 1,28,500 to Rs 1,27,700, while resistance is observed between Rs 1,30,300 and Rs 1,31,500. Jain recommends acquiring gold at approximately Rs 1,09,800, implementing a stop loss at Rs 1,09,380, with a target set at Rs 1,10,650. Additionally, he advises purchasing silver near Rs 1,28,800, with a stop loss at Rs 1,27,700 and targets ranging from Rs 1,30,300 to Rs 1,31,500.