Gold Price Update: Record high of ₹76,000 reached today, will gold rates reach ₹80,000 by end of year?

Gold prices on MCX continued their record-breaking rally on Wednesday, following the upward trend in international bullion prices which reached a new high. The opening trade saw the yellow metal hit a record high of ₹76,000 amid a weakening US dollar, escalating geopolitical tensions, and interest rate cuts in China.

In early trade on Wednesday, MCX gold was trading 0.20% higher at ₹75,150 per 10 grams, while silver prices fell by 0.18% to ₹92,230 per kg.

The international gold market also experienced a surge to a record high after a more than 1% increase in the previous session, driven by weak US data that supported the case for further rate cuts, as reported by Reuters. Moreover, silver reached near its highest level in four months.

Gold prices continued their ascent, gaining as much as 0.3% to surpass $2,665 an ounce, surpassing its previous all-time high set on Tuesday. Additionally, silver saw a significant surge of 4.6% on Tuesday, marking its largest daily gain in four months.

The unprecedented rise in MCX gold prices exceeding ₹75,000 for the first time reflects a remarkable 4.74% gain in September alone, showcasing the bullish momentum in the market.

Geopolitical tensions in the Middle East, as well as weak US data supporting the case for further rate cuts by the US Federal Reserve, are pivotal factors contributing to the upward trajectory of gold prices.

Analysts predict that MCX gold prices could potentially reach levels of ₹79,000 to ₹80,000 by the year’s end, fueled by various factors bolstering this bullish momentum.

Factors such as the Federal Reserve’s ongoing rate cuts, anticipated further reductions in November and December, resulting in lower US Treasury yields, have heightened the allure of non-yielding assets like gold. Furthermore, geopolitical tensions, particularly between Israel and Hezbollah, are amplifying the demand for safe-haven assets,” mentioned Ajay Kedia, Director, Kedia Advisory.

In addition to these factors, strong central bank buying, especially from China, and increased inflows into gold ETFs continue to provide the necessary support to buoy prices,” added Kedia.

With a consistent long-term uptrend, gold’s positioning appears favorable to potentially reach the ₹80,000 level, reflecting the positive sentiment in the market.

Technical Analysis

Technically, gold prices are currently trading positively on the hourly timeframe, holding above the 50-day moving average, indicating a robust upward momentum.

“This bullish sentiment suggests further upside potential if prices maintain above this level. Traders considering long positions may place cautious stop-losses near the 50 MA, as the prevailing trend indicates possible gains in the near term,” noted Kedia.

According to Rahul Kalantri, VP Commodities at Mehta Equities Ltd, international gold prices show support levels at $2,640 – $2,620, with resistance at $2,674 – $2,690. Furthermore, silver is supported at $31.75 – $31.50 with resistance at $32.20 – $32.32.

“In INR terms, gold has support at ₹74,850 – 75,670, while resistance is at ₹75,290 – 75,550. For silver, support levels are at ₹91,450 – 90,750, and resistance at ₹92,680 – 93,380,” outlined Kalantri.

Disclaimer: The views and recommendations expressed above are those of individual analysts or broking companies and do not reflect those of Mint. Investors are advised to consult certified experts before making any investment decisions.