Gold prices today: The yellow metal surged to an all-time high on Tuesday, September 24, driven by several positive triggers such as hopes of a further US Fed interest rate cut and China's economic stimulus measures to elevate Middle East geopolitical tensions, which lifted the demand optimism.

Spot gold rose 0.2 per cent to $2,633.25 per ounce after hitting a record of $2,639.95 earlier in the day. US gold futures gained 0.2 per cent to $2,657.90. On the multi commodity exchange, gold futures last hit a record a high of ₹74,900 per 10 grams. Spot silver rose 0.7 per cent to $30.87, platinum gained 1.5 per cent to $970.17 and palladium climbed 1.8 per cent to $1,060.25.

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Gold prices hit record-high: What's driving the yellow metal?

-Bullion scaled multiple record-highs after the US Federal Reserve cut interest rates last week by a larger-than-usual 50 basis points. Bank of Chicago President Austan Goolsbee expects many more cuts over the next year.

-The possibility of another 50 bps rate cut at the next US Fed meeting and China's measures are lifting gold prices. Analysts said there is always a risk of price correction, but it might be small as investors who missed out on the rally will use it as an opportunity to add exposure.

-China's central bank unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk. The news is mixed for Chinese bullion demand as lower rates should support demand, but could support alternative assets like Chinese equities and the real estate market.

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-Lower rates reduce the opportunity cost of holding gold. Analysts said the focus will be on US Fed Chair Jerome Powell's remarks and US PCE due later this week and gold could gain further if they reinforce the dovish outlook.

-Gold has jumped 27 per cent in 2024, with prolonged conflicts in the Middle East adding to safe-haven demand. Israel's military said it struck dozens of Hezbollah targets in southern Lebanon overnight, a day after launching a wave of airstrikes. Commerzbank raised the gold price forecast for the end of 2025 to $2,600 from $2,550.

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Where are gold prices headed?

“Gold gained ₹290 at ₹74,600 in MCX and $5 at $2,632 in Comex, driven by the Fed's interest rate cut last week. Participants are now focused on the upcoming core PCE price index data set to be released on Friday,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

“In MCX, support is placed at ₹74,000- ₹74,050 with resistance seen at ₹75,000- ₹75,250. In Comex, key support is at $2,620-$2,600 with resistance at $2,645-$2,652. Price volatility is expected ahead of the data release, and traders should watch these levels for potential movements,” added Trivedi.

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Analysts said gold prices hit fresh life highs after mixed US economic data but silver prices slipped from their highs. The downbeat economic data supported gold prices, but contractions in the manufacturing activities triggered profit taking in silver. The US dollar index also recovered from their lows and restricted gains of precious metals. 

"Gold is in a long-term bull run and continues to show strength but silver may see some profit taking at higher levels. Gold has support at $2605-2588 while resistance is at $2642-2660," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd

"Silver has support at $30.55-30.40 while resistance is at 31.05-31.24. In INR terms, gold has support at ₹74,050-73,870, while resistance is at Rs74,590-74,850. Silver has support at ₹88,450-87,750, while resistance is at ₹90,000-90,780," added Kalantri.
 

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.