Gold & Silver price hit record highs amid Fed rate cut hopes - What should investors do now?

Gold Price Today: Gold and silver prices continued their upward momentum on Wednesday, touching fresh record highs in both international and domestic markets.

The rally was driven by weakness in the dollar index, expectations of possible US Federal Reserve rate cuts, and strong investor demand for safe-haven assets.

In the international market, gold December futures settled at $4,201.60 per troy ounce, up 0.92 per cent, while silver December futures closed at $51.378 per troy ounce, gaining 1.49 per cent.

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Gold & Silver Prices At Record High

Domestically, on the Multi Commodity Exchange (MCX), gold December futures ended at Rs 1,27,210 per 10 grams, higher by 0.76 per cent, and silver December futures closed at Rs 1,62,206 per kilogram, up 1.69 per cent.

Manoj Kumar Jain, Head of Commodity Research at Prithvi Finmart, said, “Gold and silver extended their gains and hit fresh lifetime highs in both global and domestic markets. The fall in the dollar index amid US-China trade tensions and increased expectations of a Fed rate cut in the upcoming October policy meeting have fueled safe-haven buying.”

Jain noted that the dollar index weakened due to ongoing trade conflicts between the US and China, which boosted investor appetite for gold and silver. He added that “robust investor demand and safe-haven buying are likely to keep prices elevated in the near term, though volatility may persist.”

Gold & Silver Resistance Level

According to him, gold prices could test $4,890 per troy ounce, while silver may move towards $65 per troy ounce in the longer term.

For this week, he expects gold to trade in the range of $3,980–4,280, and silver between $48.50–53.50 per troy ounce.

On the technical front, Jain highlighted that gold has support at $4,184–4,140 and resistance at $4,240–4,264, while silver has support at $50.80–50.35 and resistance at $51.85–52.50 per troy ounce.

Gold & Silver Target Price

In the domestic market, gold is expected to find support at Rs 1,26,000–1,24,400 and face resistance at Rs 1,28,500–1,30,000, while silver has support at Rs 1,60,600–1,59,000 and resistance at Rs 1,64,000–1,66,500.

“For traders, we recommend buying gold between Rs 1,27,000–Rs 1,25,500 with a stop loss of Rs 1,24,000 for targets of Rs 1,28,500–Rs 1,30,000. Similarly, silver can be bought between Rs 1,62,000–Rs 1,59,500 with a stop loss of Rs 1,57,700 for targets of Rs 1,64,000–Rs 1,66,500,” Jain added.