Gold rate today climbed to a new peak during early morning deals on Multi Commodity Exchange (MCX). Gold future contract for December expiry opened at ₹62,602 per 10 gm levels, which is its new peak on the commodity exchange. However, profit taking soon triggered and the yellow metal price touched intraday low of ₹62,431 per 10 gm levels within few minutes of commodity market's opening bell on Wednesday. In international market, spot gold price is oscillating around $2,047 per ounce levels.

Silver rate today on MCX opened higher at ₹ 75,326 per kg levels and went on to hit intraday high of ₹75,600 per kg levels. In international market, spot silver price today is around $25 per ounce levels.

Sensex Today | Share Market Live Updates: Nifty hits 20K, Sensex soars

Why gold price is skyrocketing

Speaking on the reasons that has fueled gold and silver price rally, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Gold and silver prices are ascending due to continuous weakness in the US dollar and depreciating US 10-year bond yield. US dollar index has touched three month low whereas US 10-year bond yield has come close to 4 per cent levels after climbing to 5 per cent levels."

Rupee rises 5 paise to 83.28 against US dollar in early trade

“Gold price surged on dip in the US yields as traders construed Fedspeak affirming their notion of peak Fed rate to be followed by quick rate cuts. The most notable remark came from Federal Reserve Governor Waller, a known hawk, who said that he is confident enough that the current monetary policy is well positioned to slow the economy and get inflation back to 2%. He touched upon the possibility of lowering policy rates should inflation fall for several months. His comments weighed on yields and consequently on the US Dollar Index. Recent economic data have been mostly soft which suggests that the Fed is done with hiking rates. Financial conditions have loosened recently. Risk appetite remains strong amid the soft landing narrative, which continues to hurt the US Dollar Index," said Praveen Singh, Associate VP — Fundamental Currencies and Commodities at Sharekhan by BNP Paribas.

IREDA share price debuts at 56.25% premium at ₹50 on NSE

“The 10-year US yields fell 1.58% to 4.325% as the yields touched a new cycle low. Two-year US yields fell over 3% to 4.74%. The US Dollar Index closed with a loss of 0.46% at 102.73 as the Index slid for the fourth straight day. Yields and Dollar Index continue to decline this morning, too," Praveen Singh said.

Imporatnat levels to watch

Anuj Gupta of HDFC Securities went on to add that spot gold price today is in $2,030 to 2,060 per ounce range andfurther bullish or bearish sentiments sentiments can be assumed on breakage of either side of the range."

“On MCX, gold price is facing hurdle at ₹62,800 per 10 gm levels whereas it has found strong support at ₹62,000 per 10 gm levels. Silver price on MCX is in ₹73,000 to ₹75,500 per kg range," said Anuj Gupta.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

ABOUT THE AUTHOR Asit Manohar Chief Content Producer at Live Mint Digital Team Read more from this author