Gold Price Outlook: Yellow Metal At Record-High; Will 24/10 Grams Touch Rs 78,000 In Navratri, Dhanteras?

Gold prices in India and the international market touched a new lifetime high on Wednesday as dollar continues to weaken on more rate cut trajectory from US Federal Reserve. Both spot gold and US gold futures are racing to hit $2,700 an ounce. While MCX gold futures touched Rs 76,000 mark. In India, at retail stores, 24/10 grams gold were above Rs 77,000 in major cities.

Spot Gold: The XAU/USD aka spot gold touched a new lifetime high of $2,670.52 an ounce in early hours of Wednesday before holding near $2,657 per ounce level.

US Gold Futures: The US gold futures with December expiry is trading above $2,681 an ounce, after hitting a new record high of $2,694.75 an ounce.

MCX Gold, Silver Prices: MCX gold futures with October expiry touched a new all-time high of Rs 76,000 per 10 grams. While the silver futures with December expiry touched Rs 92,309 per 1kg.

Why Gold Prices Are At New All-Time High?

Colin Shah, MD, Kama Jewelry said, "The key drivers behind this rally can be attributed to the positive global cues followed by strong anticipation for further rate cuts by the US Fed in the upcoming meetings. The geopolitical tensions between Israel and Lebanon are also pushing gold prices up."

What Is Next Big Target For Yellow Metal?

Spot Gold At $2,700 Soon?

Sandip Raichura, CEO - Retail Broking and Distribution, Director - PL Broking and Distribution said, following this peak, profit-taking led to a slight decline, further exacerbated by a modest recovery in the U.S. Dollar Index, which measures the dollar against six major global currencies. With expectations of continued Fed rate cuts over the next couple of quarters-including a 50 basis point cut anticipated for the November meeting-the U.S. dollar is likely to remain weak, which historically supports gold prices.

Additionally, Raichura said, geopolitical tensions, particularly the crisis in the Middle East and the ongoing Russia-Ukraine conflict, are positively impacting gold. China has been aggressively accumulating gold at various price points since $2,200. After gold broke out of the $2,080 to $2,100 range, long-term projections suggest a target around $2,900.

In the very short term, however, Raichura added that a pullback may occur, with a near-term bottom expected at around $2,540. He said, "If that level is breached, the next critical support would be approximately $2,480. While this scenario could lead to a temporary downturn, it seems unlikely. We believe that after a potential correction of $60 to $100, gold will likely regain momentum and aim for $2,700 in the near future."

Spot Gold At $3,000, 24K/10 Grams At Rs 78,000 Soon?

Kama Jewelry's MD said, Back in domestic market, the sentiment is upbeat as the festive season has already begun. However, presently due to Shradh period, the demand may witness some softness but is expected to gain momentum at the onset of Navratri till Dhanteras.

Lastly, Shah said, "Gold prices have managed to cross the critical resistance level of $2630 comfortably. This indicates a strong support towards $3000 levels in the medium to long-term. The prices in the domestic market is expected to cross INR 78,000 domestically."