Gold rate today: Yellow metal hits record high of ₹76,000. Can gold prices touch ₹80,000 by year-end?

Gold rate today: Gold prices on MCX extended its record breaking rally on Wednesday tracking gains in international bullion prices which also rose to a record high. The yellow metal hit a record high of ₹76,000 level in the opening trade amid weakness in US dollar, escalating geopolitical tensions and interest rate cuts in China.

MCX gold traded 0.20% higher at ₹75,150 per 10 grams in early trade on Wednesday. Silver price fell 0.18% to ₹92,230 per kg.

Gold prices in the international market also rose to a record high after jumping more than 1% in the previous session, as weak US data bolstered the case for deeper rate cuts, Reuters reported. Silver was near the highest in four months.

Prices of gold gained as much as 0.3% to above $2,665 an ounce, eclipsing its previous all-time high posted on Tuesday. Silver surged 4.6% on Tuesday in its biggest daily gain in four months.

Gold prices on MCX have reached an unprecedented milestone, rising above ₹75,000 for the first time, marking a significant 4.74% gain in September alone.

Escalating geopolitical tensions in the Middle East and weak US data bolstering the case for deeper rate cuts by the US Federal Reserve are key factors supporting gold prices.

Analysts believe MCX gold prices can hit ₹79,000 to ₹80,000 levels by the year-end led by several factors fueling this bullish momentum.

“The Federal Reserve’s ongoing rate cuts, with further reductions expected in November and December, have driven US Treasury yields lower, enhancing the appeal of non-yielding assets like gold. Geopolitical tensions, notably between Israel and Hezbollah, are heightening demand for safe-haven assets,” said Ajay Kedia, Director, Kedia Advisory.

Additionally, strong central bank buying, especially from China, and increasing inflows into gold ETFs continue to support prices, he added.

“With a long-term uptrend intact, gold is well-positioned to approach the ₹80,000 level, ” Kedia said.

Jigar Trivedi, Senior Research Analyst - Currencies & Commodities at Reliance Securities highlighted the 50 basis points (bps) interest rate cut by the US Fed and its forecast to cut by another 100 bps by the year ends have raised questions on the fear of slowdown or recession in the US.

Noting that the US dollar is down more than 1% year-to-date (YTD) as incoming economic data is not showing signs of confidence, Trivedi expects the weakness to continue in the dollar index for the next couple of months, which will support the precious metal prices.

“Considering the high gold prices, we may not see a festival time buying from India. However, a political risk in the US and on-going geopolitical risk in the Middle East is likely to push the safe haven appeal for the yellow metal in the coming three months,” Trivedi said.

He expects MCX gold to appreciate to ₹80,000 per 10 grams by the time 2024 ends.

“Having said that, since it has rallied so sharply, we don’t deny the possibility of a technical pull back but the overall undertone is bullish hence buying on every dip would be a wise choice,” Trivedi said.

Technicals

On the technical front, gold price is currently trading positively on the hourly timeframe, with prices holding above the 50-day moving average, signaling a strong upward momentum.

“This indicates bullish sentiment, and further upside movement can be anticipated if the price continues to maintain above this level. Traders may consider long positions with cautious stop-losses near the 50 MA, as the ongoing trend suggests potential gains in the near term,” Kedia said.

According to Rahul Kalantri, VP Commodities, Mehta Equities Ltd international gold price has support at $2,640 - $2,620 while resistance is at $2,674 - $2,690. Silver has support at $31.75 - $31.50 while resistance is at $32.20 - $32.32.

“In INR terms, gold has support at ₹74,850 - 75,670, while resistance is at ₹75,290 - 75,550. Silver has support at ₹91,450 - 90,750, while resistance is at ₹92,680 - 93,380,” Kalantri said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.