Gold Shines Bright: 25% Surge in Four Months
Mumbai: Gold prices have hit record highs on both MCX and COMEX, soaring nearly 25% in just four months. Silver has also seen a significant jump of 15% on COMEX. According to Motilal Oswal Financial Services, the rally is driven by geopolitical tensions. US-China trade worries are also a factor. There is an increased demand for safe-haven assets.
Positive Outlook
The outlook for gold remains positive. Ongoing trade tensions, inflation concerns, and steady buying by central banks are likely to support prices. Key support levels to watch are Rs 91,000 per 10 grams on MCX and $3,100 per ounce on COMEX. Resistance levels are Rs 99,000 per 10 grams on MCX and $3,400 per ounce on COMEX.
Central Banks Boost Demand
Emerging market central banks, especially China, have been steadily adding to their gold reserves, boosting demand and stabilizing prices. The US dollar has dropped over 7% against major currencies this year.
Fed’s Wait-and-Watch Approach
The US Federal Reserve is taking a cautious approach after cutting interest rates three times in 2024. President Trump is calling for more rate cuts. Fed Chair Jerome Powell is meeting this call with caution. He cites inflation risks and economic uncertainty.
Gold Remains a Safe Haven
In a world grappling with policy uncertainty, inflation, and global tensions, gold is seen as a stable asset. Navneet Damani, Group Senior Vice President at MOFSL, recommends a “buy on dips” approach, citing ongoing global trade tensions.
