Gold, silver prices hit record highs on MCX; Key levels and expert targets to watch

SEATTLE (Scrap Monster): Gold price today: Rates of gold and silver jumped to new all-time highs on the MCX on Friday, October 17, tracking positive global cues. Weaker dollar and strong spot demand also supported gold prices. MCX Gold December futures jumped by over INR 2,400, or nearly 2 per cent, to hit a record high of INR 1,32,294 per 10 grams. MCX Silver December futures hit a record high of INR 1,70,415 per kg, rising by over INR 2,750, or 1.6 per cent.

In international markets, gold prices appeared poised for their best weekly performance since 2008, as rising US-China trade tensions and expectations of further US Fed rate cuts are fueling a rally in bullion.

The dollar's weakness is a key factor behind the rise of the yellow metal. The dollar index slipped by 0.20 per cent, making gold cheaper in overseas currencies, potentially enhancing the demand.

The domestic market is witnessing strong demand for gold. Ajoy Chawla, the CEO of Titan’s jewellery division, Tanishq, told the media that people are rushing to buy gold, thinking that gold prices will rise further.

Usually, record-high prices create demand fatigue, but the current trends indicate a fear-of-missing-out (FOMO) trend.

Domestic spot gold prices have surged by over 65 per cent this year so far due to increased political and economic uncertainties, strong central bank buying, hopes for a US Fed rate cut, and robust inflows to ETFs.

"The precious metal's rally is being driven by growing political and economic uncertainties, expectations of further US interest-rate cuts, as well as strong central-bank buying and ETF inflows," said Renisha Chainani, the head of research at Augmont.

 "Near term, some profit-booking seems likely as valuations get stretched. If you already have significant exposure, consider booking partial profits to lock gains. But for fresh allocations, a better approach is to buy on dips rather than chasing the peak," said Chainani.

Courtesy: www.livemint.com