As of October 21, 2024, the MCX gold prices for December 5 delivery have surged to ₹78,260 per 10 grams, nearing the record high of ₹80,000. Concurrently, silver prices have also reached new heights, with MCX silver for March 5, 2025, delivery surpassing ₹1,00,564 per kg. This significant increase in precious metal prices is largely driven by geopolitical tensions and uncertainty surrounding the upcoming U.S. elections, which have heightened demand for safe-haven assets. Global spot gold prices have soared to $2,725.81, reflecting a broader trend in the market. [5f2f1c56]
In recent months, Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, emphasized the growing appeal of MCX Futures and Gold ETFs as alternatives to Sovereign Gold Bonds (SGBs) as their maturities approach. Following duty cuts that made gold more attractive to retail consumers, domestic gold futures were trading around ₹72,000 per 10 grams earlier this year, a notable decrease from ₹75,000 in July 2024. This shift aligns with expectations of Federal Reserve rate cuts, which could further influence gold prices. Historically, gold has performed well during inflationary periods, although high inflation can lead to subsequent rate hikes, complicating the investment landscape. [0698eab9]
On June 26, 2024, silver prices on MCX opened lower, with the September silver contract trading at ₹89,257, down 1.89%. This decline was influenced by hawkish comments from Federal Reserve officials and renewed inflation concerns. Federal Reserve Governor Michelle Bowman emphasized the need to maintain elevated borrowing costs due to inflation risks, while Governor Lisa Cook suggested that rate cuts might be appropriate based on upcoming inflation data. Investors are closely monitoring U.S. GDP and PCE deflator inflation data, which could significantly affect silver prices. Support for the MCX September silver contract was at ₹88,000, with resistance at ₹92,000. [52916a24]
On July 24, 2024, the MCX reported significant increases in gold and silver prices, with gold futures reaching ₹68,865 per 10 grams after a rise of ₹355 or 0.52%. Silver futures also saw a slight increase of ₹287, or 0.34%. This surge was attributed to investor anticipation of U.S. economic data that could influence the Federal Reserve's rate-cut timeline. Following the Union Budget announcement that reduced customs duty on gold to 6%, gold prices climbed higher, with spot gold reaching USD 2,416.62 per ounce. Spot silver also increased, trading at USD 29.28 per ounce. [637ec47d]