Gold price ₹544 away from life-time high. Will it climb a new peak?

According to commodity market experts, outlook for gold and silver is positive as US dollar has been losing sheen on continuous basis. They said that US dollar index has closed below 103.50 levels and it may go down to 100 levels once it breaches its immediate support placed at 103 levels. Experts advised investors to maintain their position and predicted fresh high for MCX gold rate once the precious metal breaches its immediate hurdle placed at $2,010 levels in international market.

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Triggers for gold price rally

Speaking on recent gold price rally, market expert Sugandha Sachdeva said, “After testing record highs in the prior week, gold prices experienced some profit-taking at the start of the previous week, only to witness renewed buying interest at lower levels as the precious metal leaped higher for the second consecutive week, gaining by 1.07 per cent. Silver also marked an uptick and closed 1.02 per cent higher.”

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On reasons that fueled gold and silver price rally, Sugandha Sachdeva said, “The focal point of the week centered on the release of the US Federal Reserve minutes from the previous meeting, revealing an inclination to maintain higher interest rates for an extended period to counter inflation. However, amid cooling inflation and somewhat lackluster economic data, speculation has grown that the US may halt its rate hike program and potentially lower borrowing costs by mid-next year. Further, the anticipation of the Fed keeping rates steady during its December meeting has led to selling pressure on the greenback, contributing to the upward trajectory in both the precious metals.”

Important levels to look at

Advising gold and silver investors to maintain buy on dips strategy, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Gold rate today is in $1,980 to $2,010 per ounce range. On breaching the current hurdle, it may go up to $2,050 and $2,070 per ounce levels in short to medium term. On MCX, gold rate today is around ₹61,370 and it may go up to ₹61,700 and ₹62,400 per 10 gm levels in short to medium term. So, those who have position in gold are advised to hold their position maintaining stop loss at ₹60,800 per 10 gm levels. Fresh investors can also buy gold at around ₹61,250 per 10 gm levels maintaining stop loss at ₹60,800 per 10 gm levels.

Stock Market Holiday: BSE, NSE closed on Monday for Guru Nanak Jayanti

Anuj Guipta HDFC Securities maintained that silver rate today is in $23.50 to $25 per ounce range. On MCX, the precious white metal is in ₹72,000 to ₹75,000 per kg range. On breaching ₹75,000 resistance, silver price may go up to ₹78,000 in short to medium term.

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On triggers that may dictate gold and silver price in near term, Sugandha Sachdeva said, “Looking ahead to the next week, market participants will closely monitor the US PCE Price Index figures from October, the GDP revision for Q3, and the speech by the Fed Chair. These factors are poised to influence the direction of the gold prices.”

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 taking any investment decision.

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Updated: 25 Nov 2023, 07:30 AM IST