MCX, COMEX hit fresh lifetime highs on geopolitical tensions, say analysts
This story was originally published at 12:14 IST on 23 October 2024
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--MCX Dec gold contract hits fresh lifetime high of INR 78,760/10 gm
--COMEX Dec gold contract hits fresh lifetime high of $2,764.4/ounce
MUMBAI – Futures contracts of gold hit a fresh all-time high Wednesday on the COMEX and the Multi Commodity Exchange of India Ltd. due to ongoing geopolitical tensions in West Asia, uncertainty about the upcoming US presidential elections, and easing of key interest rates by major central banks, analysts said.
On Wednesday, the most-active December gold contract on MCX hit a fresh lifetime high of INR 78,760 per 10 gm, up 0.4% from the day's opening. The same month contract on COMEX also hit an all-time high of $2,764.4 per ounce and then rose to $2,764.9 per ounce, up nearly 0.1%.
Gold prices climbed, bolstered by increased demand for safe-haven assets due to tension in West Asia and uncertainty surrounding the upcoming US presidential elections, Kedia Advisory said in a note. De-dollarisation and interest rate cuts by global central banks have also led to the surge in gold prices, Manoj Kumar Jain, director, Prithvi Finmart, said.
Kumar sees support for the December gold contract on MCX at INR 77,840-78,200 per 10 gm and resistance at INR 78,800-79,240 per 10 gm. For the same-month gold contract on COMEX, the analyst sees support at $2,722-$2,744 per ounce and resistance at $2,774-$2,790 per ounce.
However, Jain said there will be a technical correction in the near time as the yellow metal is overpriced. "A 3-4% correction is likely in COMEX gold and the domestic gold prices are seen to correct to INR 75,000 (per 10 gm) level," he said.
"The possibility of a price correction shouldn't be overlooked, despite the precious metal's strong upward momentum recently. Gold price levels seem to be overextended. The relative strength index shows the commodity has entered overbought territory," Dow Jones quoted XS.com's Rania Gule as saying.
At 1051 IST, the most-traded December gold contract was at INR 78,724 per 10 gm, 0.1% higher from its previous close and that on COMEX was $2,764.4 per ounce, up 0.2% from its previous close. End
US$1 = INR 84.07
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by J. Navya Sruthi
Edited by Tanima Banerjee
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