Gold prices today: Due to demand for safe haven assets, the price of gold reached a record high in India on Wednesday, coinciding with a sharp increase in the price of silver, which also increased by more than a percent.
The price of silver was 1.24% higher at ₹77,990 per kg, while the MCX gold rate was trading 0.65% higher at ₹69,375 per 10 grams.
Demand from momentum-following funds offset the strong US dollar and the possibility of future increases in US interest rates, pushing gold prices to a new all-time high. Bullion prices were bolstered by the need for safe havens in the face of growing geopolitical unrest and the conflict between Russia and Ukraine, according to Ajay Kedia, director of Kedia Advisory.
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The global gold price continued its record-breaking run as increased demand for gold as a hedge resulted from worries about rising inflation. Earlier in the session, spot gold reached a record high of $2,288.09 and gained 0.3% to $2,286.24 per ounce. US gold futures reached $2,306.60, up 1.1%.
Amid growing tensions in the Middle East and dollar index profit-taking, gold and silver saw gains. Israel’s airstrike on an Iranian embassy in Syria heightened tensions in the Middle East’s already-raging conflict, supporting the demand for precious metals as a safe haven. Gold and silver prices are rising internationally due to expectations of an early Fed rate cut, according to Rahul Kalantri, VP of Commodities at Mehta Equities Ltd.
Prior to US Federal Reserve Chairman Jerome Powell’s speech, it was anticipated that the price of gold and silver will continue to fluctuate.
Positive factory activity data from China and assessments of the monetary policy outlook in major economies also contributed to the silver price rally. Silver is used extensively in industry.
Kedia claims that although the gold price appears to be in overbought territory, the outlook is still cautiously optimistic.
The MCX gold rate is expected to encounter resistance at ₹69,600, while support is situated at ₹68,450. Silver is seen to have resistance at ₹79,200 and support at ₹76,800, according to Kedia.
As a result of record-high prices hitting demand, India’s gold imports are expected to fall by more than 90% in March compared to the previous month and reach their lowest level since the COVID pandemic. Lower imports could limit a rally in global prices.
According to Kalantri, resistance for gold is between $2,298 and $2,312, and support is between $2,262 and $2,244. Resistance for silver is between $26.42 and $26.60, while support is between $25.90 and $25.72.
In the Indian rupee, resistance is at ₹69,380–69,620, and support is at ₹68,880–68,640. Sliver is facing resistance at ₹77,840–79,580 and support at ₹76,440–75,880, according to Kalantri.
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