Gold Rate Today: Navigating Market Uncertainty
As of today, the gold market is witnessing significant fluctuations, with MCX gold October futures reaching a historic peak of ₹1,02,191 per 10 grams. This surge is largely attributed to a combination of risk-averse investment strategies and ongoing global economic uncertainty, particularly surrounding US trade tariffs. Market experts suggest that these factors are driving investors toward precious metals as safe-haven assets.
Current Market Overview
On Friday, gold futures settled at ₹1,01,468 per 10 grams, marking a 0.20% increase. Similarly, silver September futures demonstrated resilience, closing at ₹1,14,286 per kilogram, up by 0.56%. This positive momentum in both precious metals reflects a broader trend observed in both domestic and international markets, where investors are increasingly turning to gold and silver amid economic instability.
Central Banks and Gold Accumulation
A significant driver of the current gold price surge is the strategic accumulation of gold by global central banks. Notably, the People’s Bank of China has continued its gold buying spree, marking its ninth consecutive month of increases in July. According to Bloomberg reports, international central banks expanded their gold holdings to 73.96 million ounces during this period. This trend underscores a growing consensus among central banks to bolster their reserves with gold, further fueling demand and price appreciation.
Technical Analysis
Market analysts are closely monitoring key resistance and support levels for both gold and silver. Manoj Kumar Jain from Prithvifinmart Commodity Research notes that gold has crossed its resistance level of $3,454 per troy ounce. If prices maintain this momentum, they could potentially rise towards $3,509–$3,540 per troy ounce in the coming sessions. Similarly, silver has surpassed its resistance level of $38.10 per troy ounce, with potential gains extending towards $38.80–$39.40.
Currency Influence
The US Dollar Index (DXY) has also played a role in shaping market dynamics, registering a decline of 0.29% and positioning itself around 98.11. This weakening of the dollar often correlates with rising gold and silver prices, as precious metals become more attractive to investors when the dollar weakens.
Trading Strategies
For those looking to navigate the current market, trading recommendations are crucial. Jain outlines specific price levels for market operations:
Gold Trading on MCX:
Support Levels: ₹1,01,000 – ₹1,00,475
Resistance Levels: ₹1,02,200 – ₹1,03,500
Silver Trading:
Support Levels: ₹1,13,400 – ₹1,12,750
Resistance Levels: ₹1,15,500 – ₹1,16,650
Investors are advised to consider initiating silver purchases when prices exceed ₹1,14,000, with a protective stop loss at ₹1,12,800. Potential targets for silver could range between ₹1,15,500 and ₹1,16,650. Furthermore, gold prices are anticipated to reach the ₹1,03,000 level during the current trading session.
Conclusion
The overall sentiment in the gold and silver markets remains positive, with both metals poised to mark a second consecutive week of gains. This trend is driven by heightened trade uncertainty and expectations of a softer approach from the Federal Reserve. As market conditions evolve, investors are encouraged to stay informed and consider strategic trading options to capitalize on the ongoing volatility.
Disclaimer: The recommendations and views on the stock market and other asset classes provided by experts are their own and do not represent the views of The Times of India. Always conduct your own research before making investment decisions.