Gold prices soared on September 23, 2023, reaching an all-time high of Rs. 1,12,419 per 10 grams on the Multi-Commodity Exchange (MCX). This surge is attributed to strong domestic demand, supportive global factors, and ongoing concerns over trade tariffs. In morning trading, MCX Gold October futures were up 0.15% at Rs. 1,12,397 after briefly touching the record peak. Meanwhile, MCX Silver December futures slipped 0.12% to Rs. 1,33,389 per kilogram.
The rise in gold prices this year has been dramatic, with an impressive increase of 47% in the Indian market. This surge is driven by escalating geopolitical risks and a robust retail buying trend as the festive season approaches. The US Federal Reserve recently implemented a 25-basis-point rate cut, with expectations of further reductions, which has bolstered gold’s appeal. Additionally, a weaker dollar has made the metal more attractive to international buyers.
Current Market Trends
In India, the spot price of gold was quoted at Rs. 1,13,080 per 10 grams for 24-carat gold, reflecting a rise of Rs. 10 from the previous session. The price for 22-carat gold was around Rs. 1,03,660 per 10 grams across major metro areas. Globally, gold prices also achieved new highs, with spot gold rising 0.2% to $3,752.43 per ounce, after reaching a record of $3,758.03 earlier in the day. US gold futures for December delivery climbed 0.3% to $3,787.60 per ounce.
The decline in the US dollar index to 97.20, down 0.10%, has made bullion cheaper for overseas buyers, further enhancing its global demand. Spot silver, which eased 0.2% to $43.98 per ounce, remains near a 14-year high, while other precious metals like platinum and palladium also saw gains.
Expert Insights and Market Projections
Industry experts are optimistic about gold’s future performance. Rahul Kalantri, from Mehta Equities, indicated that gold continues to find support from central bank purchases and significant inflows into exchange-traded funds (ETFs). He identified domestic support levels for gold at Rs. 1,11,670 to Rs. 1,11,380, with resistance projected at Rs. 1,12,650 to Rs. 1,12,900. For silver, support levels are seen at Rs. 1,32,450 to Rs. 1,31,750, with resistance at Rs. 1,34,850 to Rs. 1,35,600.
Manoj Kumar Jain from Prithvifinmart Commodity Research recommended buying gold near Rs. 1,11,800, setting a stop loss at Rs. 1,11,180, and targeting Rs. 1,13,000. For silver, he suggested an entry point around Rs. 1,32,500, with a target of Rs. 1,35,000. Observers note that strong demand during the festive season and investor reluctance to sell at current prices are significant factors maintaining upward pressure on gold prices.
As the market evolves, many remain focused on the interplay between global economic conditions, domestic demand, and central bank strategies, all of which will be crucial in shaping the future of gold and silver prices.