Gold and Silver at Record Highs Again: Domestic gold and silver rates scaled fresh peaks on Monday, tracking global benchmarks. On MCX, gold futures (October 3) hit an unprecedented Rs 1,10,299 in the final couple of hours in the evening session, crossing the Rs 1.10 lakh mark for the first time ever. Silver futures (December 5) scaled a peak of Rs 1,29,600. Both precious metal contracts recovered initial losses to register new all-time highs, with COMEX benchmarks hitting the record highs of Rs $3,722.2 an ounce and $43.13 an ounce, respectively.Â
With the latest record highs in place, both metals have extended a record-breaking run, having scaled a series of highs this month.Â
Most analysts attribute the surge to a softer dollar, firm safe-haven demand and expectations around the US Federal Reserve’s rate outlook with a key FOMC meeting due this week.Â
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Global markets are pricing in a 25-basis-point cut in the upcoming Fed policy review.Â
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“If the gold silver ratio starts sustaining below 85, it could give more power to silver prices in the coming sessions. Silver crossed its major resistance of $42 per troy ounce last week. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geopolitical tensions and the FOMC meeting,” said Manoj Kumar Jain, director at Prithvi Finmart, earlier on Monday.
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He expects gold and silver to trade in the ranges of $3,534-3,800 and $41.40-44.50 per troy ounce this week.
Resistance and support levels in precious metals
Jain expects support and resistance for gold at $3,662-3,630 and $3,700-3,717 per troy ounce and for silver at $42.40-42.10 and $43.20-43.50 per troy ounce, respectively.
At MCX, gold has support at Rs 1,09,000-1,08,440 and resistance at 1,09,850-1,10,200, he said.
For silver, these levels are placed at Rs 1,27,700-1,26,650 and Rs 1,29,500-1,30,300, respectively.
