On September 23, 2023, gold prices surged to new all-time highs on the Multi-Commodity Exchange (MCX), driven by strong domestic demand and favorable global conditions. October futures for gold traded at Rs. 1,12,397 per 10 grams, briefly peaking at Rs. 1,12,419 during morning trading. This marks a remarkable increase of 47% year-to-date, reflecting heightened geopolitical risks and aggressive accumulation by central banks.
The increase in gold prices comes as investors respond to ongoing concerns regarding trade tariffs and potential economic instability. The recent decision by the US Federal Reserve to cut interest rates by 25 basis points and expectations of further monetary easing have contributed to gold’s upward momentum. Additionally, a weaker US dollar has made gold more attractive to overseas buyers, further boosting its demand.
Market Updates and Global Trends
In contrast to the upward trend in gold, MCX silver December futures decreased by 0.12%, settling at Rs. 1,33,389 per kilogram. In India, the spot price for 24-carat gold was quoted at Rs. 1,13,080 per 10 grams, an increase of Rs. 10 from the previous session. For 22-carat gold, the price stood at Rs. 1,03,660 per 10 grams across major metropolitan areas.
Globally, gold prices reached historic levels as traders anticipated further rate reductions by the US Federal Reserve. Spot gold increased by 0.2% to $3,752.43 per ounce after hitting a record of $3,758.03 earlier in the day. US gold futures for December delivery rose by 0.3% to $3,787.60. Meanwhile, silver prices eased slightly to $43.98 per ounce, remaining close to a 14-year high. Both platinum and palladium also saw gains, with increases of 0.3% and 0.9%, respectively.
Expert Insights and Market Forecast
According to Rahul Kalantri of Mehta Equities, the gold market remains strongly supported by central bank purchases and significant inflows into exchange-traded funds (ETFs). He identifies support levels for gold in the range of Rs. 1,11,670 to Rs. 1,11,380, with resistance noted at Rs. 1,12,650 to Rs. 1,12,900. For silver, support is expected near Rs. 1,32,450 to Rs. 1,31,750, with resistance levels at Rs. 1,34,850 to Rs. 1,35,600.
Additionally, Manoj Kumar Jain from Prithvifinmart Commodity Research advises buying gold around Rs. 1,11,800, with a stop loss set at Rs. 1,11,180 and a target price of Rs. 1,13,000. For silver, he suggests an entry point of approximately Rs. 1,32,500, aiming for a target of Rs. 1,35,000. Analysts highlight a strong festive demand in India and a reluctance among investors to realize profits, which continues to support elevated prices.
As the market evolves, investors are closely monitoring both domestic and global economic indicators that could further influence gold and silver prices in the coming weeks.
