Gold prices hit record high ahead of Diwali festivities
Diwali, prices will cross Rs 80,000 per 10 gm mark and may even touch Rs 85,000 per 10 gm level.
With the Goods & Services Tax (GST) of 3 per cent, gold is now commanding a price of Rs 79,651 per 10 gm in the physical market — short of Rs 349 to touch Rs 80,000 per 10 gm.
Jateen Trivedi, VP Research Analyst — Commodity and Currency, LKP Securities said «Gold prices extended their rally, surpassing $2,685 per troy ounce in Comex with gains of $13, while in MCX, gains of Rs 300 pushed prices close to Rs 77,000, marking all-time highs once again. This rally is being driven by growing uncertainty in the returns of risky assets, making gold an attractive allocation for investors. The ongoing geopolitical tensions in the Middle East, coupled with expectations of further interest rate cuts, continue to support the upward momentum in gold prices.»
The precious metal has strong support near Rs76,300-Rs 76,500 in MCX, which should provide a cushion during any minor corrections. On the upside, resistance is now seen extending toward Rs 77,250-Rs 77,450, with the potential for further gains if safe-haven demand persists. As global uncertainties remain elevated, gold could continue to see buying interest in the near term," Trivedi added.
Gold's record rally continues amid uncertainty surrounding the U.S. election and rising Middle East tensions — keeping the demand for safe-haven assets firm. «Also easing monetary policies globally is adding further support. However, prices have rallied so far this week and are up 1.5%, we
