Chennai: Recording fresh high levels continuously for the past six days, gold prices touched Rs 81,000 per 10 gm in the Delhi spot market, while silver zoomed past Rs 1 lakh per kg. Though profit-booking could see some weaknesses in the precious metals in the short-term, the medium to long-term prospects are intact.
In the Delhi spot market, 24 carat gold prices, which is inclusive of GST rates, made a high of Rs 81,000 while silver was seen above Rs 1,01,000 per kg. In the Multi Commodity Exchange, which excludes the GST rate, gold made a new high of Rs 78,919 per 10 gm and silver touched Rs 1 lakh. However, profit booking led to technical correction in both the metals as prices closed lower.
“Gold has been rallying for two-and-half months and has continuously touched new highs in the past six days. Once the prices touched the psychological levels of Rs 80,000, technical correction was expected,” said Ajay Kedia, MD, Kedia Commodities.
At MCX, gold was trading around Rs 63,225 in the beginning of the year. On 5th April, gold touched Rs 70,000 levels. In July, following the import duty cut announced in the budget, gold prices went down. But the prices returned to the pre-cut levels by September 12, after a gap of 50 days. By September 24, gold rallied to Rs 75,000 and has been going up steadily in October.
In the international market, gold made a high of $2772 an ounce on Wednesday and silver was seen at $35 per ounce. The IMF released its global economic forecast on Wednesday and China announced a stimulus package and these supported the metal prices.
“The market is awaiting a few more data points to be released in the next couple of days, which includes US housing data as well as services and manufacturing PMI. The dollar is likely to gain some support from the data points and this could put some pressure on the precious metals,” said Kedia.
According to him, gold is already overbought and hence a technical correction is likely in the short-term. However, by March 2025, gold prices may touch $3100 and silver $40 per ounce. This will take Indian gold prices to Rs 85,000 and silver to Rs 1,30,000 at the MCX. end
