Abhishek Sinha
Gold prices scaled a new record on Wednesday, surpassing ₹1.27 lakh per 10 grams on the Multi Commodity Exchange (MCX), driven by renewed global uncertainty and expectations of further US Federal Reserve rate cuts.
At the opening bell, MCX gold futures rose 0.52% to ₹1,26,915 per 10 grams compared to the previous close of ₹1,26,256, and later hit a historic peak of ₹1,27,500. Silver prices also gained momentum, opening 0.18% higher at ₹1,59,800 per kg and touching an intraday high of ₹1,61,418.
By 9:10 AM, MCX gold was trading 0.46% higher at ₹1,26,835, while silver advanced 0.52% to ₹1,60,333 per kg.
Global Market Update
In international markets, spot gold rose 0.4% to $4,155.99 per ounce, while US gold futures for December delivery climbed 0.3% to $4,174.30. Gold has gained nearly 55% year-to-date (YTD), touching an all-time high of $4,179.48 on Tuesday.
The rally has been fueled by geopolitical tensions, economic uncertainty, strong central bank buying, de-dollarisation trends, ETF inflows, and hopes of rate cuts by the US Fed.
Fed Chair Jerome Powell reaffirmed on Tuesday that future rate decisions will depend on economic data, balancing inflation risks with slowing job growth. Markets now anticipate a 25-basis-point rate cut later this month, followed by another in December.
Domestic Drivers
The sharp uptick in MCX gold mirrors the global sentiment amid escalating US-China trade tensions. US President Donald Trump recently hinted at reducing certain trade ties with China, sparking renewed demand for safe-haven assets like gold.
“Gold extended its bullish run as investors sought refuge amid global uncertainties and expectations of more monetary easing by the Fed,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities. “The combination of a weaker rupee and bullish global cues may push December gold futures towards ₹1,27,500.”
Technical Outlook
According to Rahul Kalantri, VP Commodities at Mehta Equities, gold prices are expected to find support at ₹1,25,470–₹1,24,580 and face resistance between ₹1,27,150–₹1,27,900. For silver, key support is seen at ₹1,57,950–₹1,56,150, with resistance around ₹1,60,850–₹1,61,950.
Globally, gold’s support stands at $4,120–$4,080, and resistance between $4,195–$4,220, while silver’s range remains $51.10–$50.40 (support) and $52.35–$52.80 (resistance).
Outlook
With festive demand picking up in India and global uncertainties showing no signs of easing, analysts believe the bullion rally may extend further, especially if the Fed proceeds with rate cuts.
