Gold prices in India continued to touch record high and Monday, October 21, 2024, was no different. MCX gold has crossed its highest level above Rs 78,000 mark, while MCX silver prices has touched new high of more than Rs 98,200. The next big prediction for gold and silver is Rs 80,000 and Rs 1,00,000. Domestic gold prices are rallying, tracking international prices as investors are resorting precious metals amidst economic uncertainties and geopolitical risks.
For the week, the mantra is for investment is 'buy-on-dips' and 'sell-on-rise'.
"Bias can be "Range to Up" with "Buy-On-Dip" on dip towards 76500 & lower 75500 levels with strictstops. While "Sell- On-Rise" can be looked onmoves towards 79200 & 80k levels with strict stops (Contra Swing Trades). Overall, 76k & 80k can be crucial short-term support levels with "Buy-On-Dip" & "Sell-On-Rise" outlook," Phillip Capital said in its weekly gold outlook report for October 21-27.
In case of silver, Phillip Capital's note said, "the counter can be looked as "Buy-On-Dip" outlook towards 93500 & lower levels while on higher-end resistance of 96500 & 99400 levels can witness "profit-taking" cum some pressure. Overall, Buy-On-Dip remains outlook on short & mid-term time-frame."
MCX Gold, Silver Prices: MCX gold futures with December 2024 expiry is at Rs 78,084 per 10 grams, up by Rs 335 or 0.43%. In the early trade, the futures surged to hit a new lifetime high of Rs 78,260 per 10 grams.
Further, MCX gold silver prices with December expiry, skyrocketed by Rs 2,398 o 2.51% to Rs 97,800 per 1kg. This comes after the commodity touched a new all-time high of Rs 98,224 per 1kg.
Spot Gold, US Gold Prices: The spot gold today rallied to hit a new high of $2,732.86 an ounce, and US gold futures with December expiry touched a fresh record of $2,747.70 an ounce.
According to Nirmal Bang's note, markets are focused on increasingly fraught geopolitical developments after Israel said it killed Hamas leader Yahya Sinwar, the architect of the Palestinian group's attack on southern Israel that triggered a yearlong war in Gaza. Prime Minister Benjamin Netanyahu said Israel would keep fighting until all the hostages captured by Hamas last year were free, even as US President Joe Biden said it was time for the war to end.
Nirmal's note added, " We expect gold and silver prices to trade higher for the day; as gold prices reached a record today, with safe haven demand continuing to support prices as traders monitored escalating tensions in the Middle East and the increasingly tight US election race."
In the long-term, global brokerage Goldman Sachs is bullish on yellow metal, owing to economic uncertainty, lowering global interest rates, and structurally higher central bank demand. Also, the brokerage observed that the BRICS+ nations' active movement on reducing the reliance on the US dollar, is likely to increase appetite for gold.
That being said, Goldman Sachs is expecting spot gold to touch the $3,000 mark by 2025-end.
What about gold stocks?
As per brokerage Jefferies, gold loan financiers are likely to benefit from gold price tailwinds and the current rate cycle. The outlook is positive.
In its report, Jefferies highlighted that double-factor gold prices and potential interest rate cuts are favourable for gold loan NBFCs as they will boost earnings growth and return on equity of key players. Traditional gold NBFCs are likely to be well-positioned to benefit from the scenario.
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