Gold Near Rs. 1.39 Lakh on MCX as Fed Rate Cut Bets, Global Conflicts and Oil Tensions Boost Safe-Haven Demand

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Gold prices moved sharply higher on Friday and reached a new record on the Multi-Commodity Exchange. The rise came as global uncertainty increased and hopes of US interest rate cuts grew stronger. Silver prices showed an even bigger jump and touched fresh lifetime highs.

MCX gold futures climbed 0.65% and hit Rs. 1,38,994 per 10 grams. Prices stayed firm after the opening bell and traded close to Rs. 1,38,904 per 10 grams around 9:15 am. Silver prices surged much faster. MCX silver March futures jumped nearly 4% and reached a new high of Rs. 2,32,741 per kilogram. Morning trade showed silver near Rs. 2,32,068 per kilogram.

Gold Gains as Rate Cut Hopes Grow


Gold prices gained strength as investors looked for safety. Markets expect the US Federal Reserve to cut interest rates as early as January. Cooling inflation and slower job growth were the most recent US data points that led to this optimistic view on falling costs of borrowing. Usually, lower interest rates make gold more expensive since the metal does not pay interest.

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Global tensions also pushed gold prices higher. The United States and Venezuela continued to face rising tension. The reports about restrictions on the transportation of Venezuelan crude lifted concerns in the oil markets worldwide. The protracted conflict between Russia and Ukraine has also kept the risk levels very high. The recent US military operation against terrorist organizations in the African continent has further escalated global anxiety.  These events increased demand for safe assets like gold.

Global Cues Lift Bullion Prices


International markets supported the trend. US gold futures for February delivery rose 0.7% and touched a record $4,533.60 per ounce. Safe demand stayed strong as investors reacted to geopolitical risks and rate cut expectations. Silver prices also moved higher in overseas markets due to tight supply and strong industrial demand.

Experts expect gold prices to remain positive in the short term. Analysts said MCX gold may face resistance near Rs. 1,39,000 per 10 grams. Support levels remain around Rs. 1,37,200 and Rs. 1,36,600. Silver prices showed support near Rs. 2,21,750 per kilogram. Resistance levels stood close to Rs. 2,28,800 per kilogram.

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Silver Shines on Strong Demand


Silver maintained its lead over gold when it came to percentage gains. The precious metal was backed by demand from the renewable energy and electronics industries. The combination of these reasons ensured a high silver price.

The overall outlook for the precious metals stayed positive. Markets priced in two US Fed rate cuts next year, and a weaker dollar supported this view. However, experts warned that prices may remain at very high levels, stating that sudden profit booking might cause short-term corrections.

Gold prices and silver prices reflected a mix of global policy hopes and rising geopolitical stress. MCX gold stayed in focus for domestic traders. Silver prices gained attention due to strong industrial demand. The coming days may bring more movement as global events continue to shape market direction.

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