Gold Prices Shine Brighest Ever: 24-Carat At Record Rs 64,200, Spot Gold Tops $2,100; What's Driving Bulls?

Gold is glittering the brightest ever as prices of these precious metals across the board have touched a new historic high. MCX gold price crossed the Rs 64,000 mark, and the 24-carat touched a record high of Rs 64,200 per 10 grams. 18-carat and 22-carat were also at their lifetime high levels. Meanwhile, spot gold topped its $2,100 mark. A part of the driving force in gold could be attributed to the big win of the BJP party in three major states of northern India, as this brings broadly bullish sentiments across the Indian market.

However, broadly at home, gold prices shot up to sky-high levels tracking a strong bullish trend in international gold prices as safe-haven assets became much more attractive than to dollar index which has been taking massive outflows for the past few days on growing bets that the US Federal Reserve was done with hiking rates and a cut was most likely in the early-2024.

In India, at retail stores, 24-carat gold climbed by Rs 440 to Rs 64,200 per 10 grams on Monday, compared to the previous day's print of Rs 63,760 per 10 grams. Prices of 1-gram to 100-gram gold surged by Rs 44 to Rs 4,400 over the previous day.

Meanwhile, 22-carat gold zoomed by Rs 400 to Rs 58,850 per 10 grams, as against Rs 58,450 of the previous day. Here, prices of 1 gram to 100 grams rallied by Rs 40 to Rs 4,000.

As for 18-carat gold, 10 grams of yellow metal was costlier by Rs 330 to Rs 48,150 as against Rs 47,820 the previous day. Also, 1-gram to 100 grams of 18 carats also saw a jump in their price levels by Rs 33 to Rs 3,300.

At MCX, gold futures with February expiry advanced by Rs 123 or 0.2% to trade at Rs 63,480 per 10 grams. It corrected from its all-time high level of Rs 64,063 per 10 grams which was achieved during early trade. Further, gold futures with January expiry surged by Rs 184 or 0.3% to trade at Rs 63,271 per 10 grams, and it ranged from Rs 63,840 to Rs 62,909 levels.

On the global front, spot gold in London climbed to hit a new record high of $2,148.78 an ounce before correcting and trading to near $2,071 per ounce. US gold futures with December expiry also skyrocketed to hit a historic level of $ 2,151.20 an ounce before pulling back slightly and trading at $2,090.35 an ounce.

Rahul Kalantri, VP of Commodities, Mehta Equities said, "Gold prices surged to an unprecedented peak above the psychologically significant $2,100 mark during the early Asian session on Monday. The surge is attributed to speculation that the Federal Reserve (Fed) has reached the pinnacle of its rate hike cycle, thereby bolstering demand for the precious metal. Simultaneously, silver prices have reached 5-month highs in the international markets and are poised to achieve a lifetime high in the domestic markets."

He further added, "Despite hawkish comments from the Fed Chairman, the dollar index retreated from its 14-week highs, providing additional support to precious metals."

The expert further said, "Anticipating a day of volatility in today's session, we observe that gold finds support at $2072-2058, with resistance at $2104-2120. For silver, the support is at $25.32-25.20, while resistance stands at $25.70-25.84. In INR, gold has a support range of Rs63,020-62,850, coupled with resistance at Rs63,780 and Rs63,950. Meanwhile, silver enjoys support at Rs77,550-77,180, and faces resistance at Rs78,670 and Rs79,130."

He also said, "Last week's global economic data presented a mixed picture, with the euro and pound sterling gaining ground against the U.S. dollar, further reinforcing the upward trajectory of gold and silver prices."

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