CHENNAI: Gold prices continued their upward climb on Tuesday, holding near record highs in early trade as investors sought safety amid global economic uncertainty and expectations of further US rate cuts.
In Delhi, 24-carat gold was quoted around Rs 1,20,370 per 10 grams, while 22-carat gold traded near Rs 1,10,339, according to early market data. On the Multi Commodity Exchange (MCX), December gold futures were up 0.49 percent at Rs 1,20,840 per 10 grams by 9:45 AM IST, hovering close to the key resistance level of Rs 1,21,000.
Many commodity market analysts quoted in reports saying that gold has maintained a strong momentum, supported by persistent safe-haven buying, a weaker dollar, and festive season demand in India. With the US government shutdown adding to market nervousness and the Federal Reserve expected to ease rates later this year, traders are increasingly turning to gold as a hedge against economic instability.
“The underlying sentiment remains bullish, but prices are approaching resistance levels where short-term corrections cannot be ruled out,” market analysts said.
In the domestic market, gold of 24-carat purity traded at Rs 12,202 per gram, while 22-carat gold stood at Rs 11,185 per gram, data from 5Paisa showed. Across major cities, prices remained elevated, with jewellers reporting steady demand ahead of the festive and wedding season.
Experts have pegged support for gold around Rs 1,19,600– Rs 1,19,280 per 10 grams and resistance between Rs 1,20,850–Rs1,21,400, suggesting that any sustained move above the upper band could lead to another leg of rally.
Globally, spot gold prices were firm around US$ 3,950 per ounce, benefiting from a soft US dollar and falling Treasury yields. Investor inflows into gold-backed ETFs also indicated growing institutional participation.
Despite the bullish tone, analysts cautioned about potential volatility in the near term, especially if global risk sentiment improves or profit-taking emerges after recent sharp gains.
With both international and domestic cues supporting the metal, gold remains on course for a strong October performance, though traders are advised to watch for quick price swings around record levels.
