Gold Prices Today: The yellow metal breached the $2,700 mark for the first time on Friday, October 18, extending a rally driven by expectations of further US monetary policy easing and safe-haven demand amid jitters about the US presidential elections and Middle East geopolitical conflicts.

Spot gold last rose 0.6 per cent to $2,709.81 per ounce, having hit an all-time high of $2,714.00 earlier in the session. The bullion has gained 2.4 per cent so far this week. US gold futures gained 0.7 per cent to $2,725. Spot silver rose 1.2 per cent to $32.08 and headed for a weekly gain. Platinum added 1.5 per cent to $1,007.25, and palladium rose 1.5 per cent to $1,057.82.

Gold price today: Rates jump to record highs on positive global cues; experts eye THESE key levels for MCX Gold

Gold has surged over 31 per cent this year, with gains driven by Middle East conflicts and the anticipation of more easing by central banks, including the US Federal Reserve. Rising geopolitical tensions prompt investors to seek safe-haven assets such as gold, driven by risk aversion and concerns over global market instability.

Gold hits $2,700: What's driving the yellow metal?

-Lebanon's Hezbollah militant group said on Friday it was moving to a new and escalating phase in its war against Israel. At the same time, Israel's Prime Minister Benjamin Netanyahu late on Thursday vowed to press on with wars in Lebanon and Gaza. 

-Analysts said it is no surprise that the yellow metal broke fresh highs and the psychologically important $2,700-mark during the Asian hours, as it appears speculative interest is coming from that region. 

-Gold is benefiting from some very high conviction trades and not only is ignoring key factors like declining inflation and Treasury yields, but it is scarcely pausing for consolidation—let alone profit taking. 

Top News on October 18: Gold tops $2,700-mark, Q2 results, Maharashtra elections and more

-In the physical markets, dealers in India were forced to offer discounts this week, as record high prices dampened demand ahead of the festive season. Gold tends to gain during lower interest rates and economic and global uncertainty.

-In futures trade, gold contracts for December delivery were trading at ₹77,620 per 10 gram on the Multi Commodity Exchange (MCX). During the day, the gold futures touched a lifetime high of ₹77,667 per 10 gram.

-Market experts said the demand for precious metals has strengthened to a record level in the domestic market, with a boost in customer buying during the festival season. The bullish sentiment spilled over to the wider precious metals complex, with silver jumping as much as 5.5 per cent to the highest since 2012.

-Investors are treating the yellow metal as safe haven amid uncertainty due to ongoing tension in the Middle East and upcoming US presidential polls. On MCX, silver contracts for December delivery sprung ₹1,231 or 1.34 per cent to ₹92,975 per kg.

US Fed pivot in focus: Why are gold prices following US Treasury yield? — Explained
 

Where are gold prices headed?

Manav Modi, Senior Analyst—Commodity Research at Motilal Oswal Financial Services Ltd, said: "Gold prices hit a record on both Comex and the domestic front, benefiting from safe-haven demand with just weeks left to a closely contested US presidential election, while an interest rate cut by the European Central Bank also helped."

"Gold prices reached an all-time high, surpassing $2,700 per ounce fuelled by heightened safe-haven demand amid Israel’s military actions in the Middle East," Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

Despite strong US retail sales and labour market data, "this robust strength is largely driven by the expectation of ongoing interest rate cuts in the US, with further reductions anticipated soon," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

 

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.