Gold Price MCX Gold rate nears record high of Rs 80,000/10 gm mark, silver prices at fresh peak
Mumbai/IBNS: Gold and silver prices surged to new record highs in the domestic futures market on Monday (Oct. 21) morning, buoyed by strong spot demand and favourable global trends.
On the Multi Commodity Exchange (MCX), gold for December 5 delivery reached an all-time high of Rs 78,260 per 10 grams, while silver for December 5 delivery hit Rs 98,224 per kg.
Additionally, MCX silver for March 5, 2025, delivery surpassed Rs 1,00,564 per kg.
Globally, spot gold prices soared to a record $2,725.81, with silver nearing a 12-year high due to rising geopolitical tensions in West Asia and uncertainty surrounding the 2024 US presidential election.
On Friday (Oct. 18), both gold and silver ended the trading session on a positive note in both domestic and global markets.
The December gold futures contract closed at Rs 77,749 per 10 grams, marking a 0.82 percent increase, while the December silver futures contract rose by 3.99 percent to settle at Rs 95,402 per kg.
Several factors are driving this rally in precious metals, including geopolitical instability, macroeconomic concerns, fluctuations in the dollar index, and potential interest rate cuts.
The precious yellow metals saw significant gains over the past week, largely due to the European Central Bank’s (ECB) decision to cut interest rates during its monetary policy meetings.
Gold prices surged beyond $2,700 per troy ounce, reaching record highs, while silver hit its highest level in 12 years in international markets.
Expectations of a US Federal Reserve rate cut in November, following mixed US economic data, also contributed to the bullish performance of gold and silver.
Additionally, better-than-expected Chinese economic data, released on Friday, helped curb the dollar index’s rise and further supported the upward momentum in precious metals.
Currently, the US Dollar Index (DXY) is hovering around the 100.94 mark, showing a marginal gain of 0.03 percent.
However, the dollar index has retreated from its near three-month highs.
Geopolitical tensions in the Middle East and uncertainty surrounding the upcoming US presidential elections are further fueling the demand for gold and silver in international markets.
According to a Reuters report, Israel is preparing to strike financial hubs linked to Lebanon's Hezbollah and has urged civilians to evacuate those areas.
The US election is another key factor affecting investor sentiment, with media reports highlighting a close race between former President Donald Trump and Vice President Kamala Harris.
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