Gold hits record high of Rs 71,000, Silver Soars Record Highs Hit Today.

Gold hits record high of Rs 71,000, Silver Soars Record Highs Hit Today.

In the opening trade on Monday, both gold and silver prices soared to new lifetime highs, extending their remarkable rally.

Gold contracts on MCX surged to a new pinnacle of Rs 71,080 per 10 grams, marking a significant leap of Rs 440 or 0.62%. Meanwhile, silver futures climbed to a fresh peak of Rs 82,064, trading at Rs 81,939, up by Rs 1076 or 1.33% around 10:10 am.

Dollar Index Decline Fuels the Surge

The rise in prices was attributed to the decline in the dollar index (DXY), hovering near the 104.25 mark, down by 0.05 or 0.04%. Over the last five trading sessions, the index has dropped by 0.73%.

Outlook and Expectations

Experts foresee the gold rally continuing, with expectations for Comex gold to potentially move towards $2,370 and $2,400 in the short term. On the MCX front, resistance is seen at Rs 72,650-73,555 with support at Rs 69,200-69,022.

Analysis by Anuj Gupta, HDFC Securities

Anuj Gupta of HDFC Securities highlighted the significant gains in both gold and silver prices in April, with gold rising by 4.86% and silver by 8.82% on MCX. Year-to-date gains are also substantial, with gold up by 12.30% and silver by 9.68%.

Central Banks’ Gold Purchases

The consistent gold purchases by central banks, particularly China’s, have been driving the surge in gold prices. China’s central bank has been steadily increasing its gold reserves, contributing to the metal’s recent strength.

Geopolitical Tensions and Economic Uncertainties

The accumulation of gold by central banks reflects broader geopolitical tensions and economic uncertainties, enhancing gold’s appeal as a safe-haven asset.

Neha Qureshi of Anand Rathi Commodities & Currencies highlighted technical indicators suggesting an upward momentum in gold prices. However, caution is advised as gold’s RSI has entered the overbought zone.

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