Business
Gold scales fresh peak at Rs 1.36 lakh per 10 gm as global rally intensifies
The bullion trade is expecting prices to go up further in the coming weeks and any dip in prices from the current peak is an opportunity to buy gold with no market signal of correction anytime soon.
On Tuesday, with a Goods & Services Tax (GST) of 3%, gold was available at a price ₹1.4 lakh per 10 gm. In the international market, gold prices surpassed $4500 per troy ounce for the 50th record-breaking session this year, while silver hit a new high of $70 per troy ounce on expectations of looser US monetary policy and rising geopolitical tensions.
“Gold has touched the target resistance of $4500 per troy ounce. Gold broke its previous high of $4,400, after two months of consolidation between $3,935 and $4,400, so this rally is expected to extend further towards $4,575 and $5,000 in a few weeks,” said Renisha Chainani, head (Research) at Augmont Gold.
Silver too has touched the first target resistance of $70 per troy ounce. “If silver continues its bullish momentum, the next target is $72 per troy ounce. The uptrend is intact until prices are trading above $67.50 support,” Chainani added. On Tuesday, silver was trading at ₹2.09 lakh per kg in the retail market.
The gold trade is expecting prices to touch ₹1.38 lakh -1.4 lakh (without GST) by January 2026. “While the demand has slowed down due to the continuous rally in prices, consumers are also not exchanging old gold to get new jewellery. Even household old gold is not being liquidated despite prices of the yellow metal rising. People are expecting prices to rise further from the current level,” added Surendra Mehta of India Bullion & Jewellers Association.
Markets are pricing in two quarter-point rate cuts by the Federal Reserve next year, despite evidence of softening inflation and a cooling labour market, which is driving the price of the yellow metal.
