Mumbai, January 27 (IANS). Gold and silver prices hit new record highs on Tuesday amid continued weakness of the US dollar and expectations of interest rate cuts by the US Federal Reserve.
In the early trade of the day, gold rose by 2.4 percent to Rs 1,59,820 per 10 grams, which is the highest level till date. However, later the prices fell slightly due to profit booking.
Silver broke all previous records and reached Rs 3,59,800 per kg, which is the highest level till date.
However, till the time of writing the news (around 10.47 am), February contract gold on MCX rose by 1.45 percent or Rs 2,270 to reach Rs 1,58,307 per 10 grams. Whereas March contract silver rose by 4.84 percent i.e. Rs 16,197 to Rs 3,50,896 per kg.
In international markets also, gold and silver reached their highest level ever. Due to increasing tension in the world, investors are moving towards gold and silver as safe investments.
The fear of government shutdown in America and threats of 25 percent new tariffs from President Donald Trump have increased market concerns. Trump has talked about imposing tariffs on imports of South Korean cars, lumber and medicines. He also warned Canada that if it makes an agreement with China, 100 percent tariff will be imposed on it.
In the US, gold futures for April delivery rose nearly 1 percent to $ 5,113.70 per troy ounce. During this period, the dollar index weakened by 0.1 percent, making gold cheaper for foreign investors.
Prices are being supported by continued safe-haven demand, purchases of gold by central banks and expectations of accommodative monetary policies around the world.
Whereas Comex silver has crossed the level of $99 and is making new records.
A two-day meeting of the Federal Open Market Committee (FOMC) is going to be held in America this week. It is expected that interest rates will not be changed at the moment, but rates are expected to be cut at least twice by the end of the year.
Commodity expert Rahul Kalantri of Mehta Equities Limited said that the market is now keeping an eye on the decision of the US Federal Reserve. Discussions of political pressure have further increased investment in precious metals like gold and silver.
According to experts, gold can get support between Rs 1,57,050 to Rs 1,55,310, while on the upside there is resistance at Rs 1,59,850 and Rs 1,62,950.
For silver, Rs 3,38,810 and Rs 3,22,170 are the support levels, while resistance is considered at Rs 3,55,810 and Rs 3,62,470.
Another analyst estimates that gold may reach Rs 1,65,000 per 10 grams and silver may reach Rs 3,65,000 per kg in the coming sessions.
According to recent reports, after the sharp rise in silver, now stability at higher levels or even a slight decline may be seen, as investors can book profits.
–IANS
DBP/AS
