Gold and silver hit new record highs on the MCX; is it time to buy more or book profits?

Gold price today: Rates of gold jumped to their fresh all-time highs on the MCX during Wednesday's session, driven by strong spot demand, positive global cues, concerns over the US government shutdown and expectations of further rate cuts by the US Federal Reserve.

MCX Gold breached the 1,22,000 per 10-gram mark for the first time ever, hitting a record high of ₹1,22,740. MCX Silver also hit a record high of ₹1,48,724 per kg.

Around 11:30 am, MCX Gold December futures traded 1.15 per cent higher at ₹1,22,505 per 10 grams. MCX Silver December futures were 1.61 per cent up at ₹1,48,140 per kg at that time.

US gold futures for December delivery pushed through $4,000 per troy ounce to hit a record high of $4,037 on Wednesday.

The yellow metal has been on a bullish run this year due to a confluence of factors, including ongoing political and economic uncertainties, strong buying by central banks, expectations of a US Fed rate cut, robust inflows into gold ETFs (exchange-traded funds), and the dollar's weakness.

Domestic spot gold prices have surged by over 55 per cent this year so far.

Gold prices tend to rise in times of economic and political uncertainty, as well as during periods of rate cuts.

The US government shutdown entered its seventh day on Tuesday, postponing the release of key economic indicators.

The focus is on the US Fed meeting minutes and Fed Chair Jerome Powell's speech, which will influence expectations about the extent and size of upcoming rate cuts.

Experts believe gold prices may continue to rise further this year, despite some intermittent profit booking, as the US Fed is expected to cut rates by 25 basis points each at its next policy meetings in October and December.

Increased economic uncertainties, due to US President Donald Trump's tariff policies, are also a key factor that may weigh on the US dollar and drive safe-haven demand for gold.

"Gold's bull run may continue on rate cuts hopes and political and economic uncertainties. Investors should hold their positions. MCX gold prices are expected to move higher to ₹1,25,000 per 10 grams by the end of 2025," said Anuj Gupta, A SEBI-registered analyst.

On the other hand, Manoj Kumar Jain of Prithvifinmart Commodity Research suggests buying gold after some correction.

"We suggest booking profits in the long positions of gold and silver ahead of the Fed meeting minutes and wait for some corrective dips for initiating fresh long positions, but strictly avoid short selling in both precious metals," said Jain.

According to Jain, gold has support at $3,980 and $3,955, while resistance is at $4,034 and $4,050 per troy ounce, and silver has support at $47.20 and $46.80, while resistance is at $47.85 and $48.30 per troy ounce in today’s session.

MCX gold has support at ₹1,20,400 and ₹1,19,800 and resistance at ₹1,21,800 and ₹1,22,500, while silver has support at ₹1,44,700 and ₹1,43,850 and resistance at ₹1,47,000 and ₹1,48,200, said Jain.

Rahul Kalantri, VP of commodities at Mehta Equities, stated that gold has support at $3,950 and $3,920, while resistance is located at $4,020 and $4,045. Silver has support at $47.70 and $47.40, while resistance is at $48.50 and $48.90.

In INR, Kalantri finds support for gold at ₹1,20,600 and ₹1,20,280, and resistance at ₹1,21,850 and ₹1,22,400. Silver has support at ₹1,44,450 and ₹1,43,850 and resistance at ₹1,46,550 and ₹1,47,450.

Read all market-related news here

stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories