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    Home»Commodities»Gold, silver decline on profit booking after hitting record highs on MCX; what should investors do?
    Commodities

    Gold, silver decline on profit booking after hitting record highs on MCX; what should investors do?

    September 30, 20254 Mins Read


    Gold price today: The rates of gold and silver witnessed some profit booking in the afternoon session after jumping to their fresh record highs on the MCX on Tuesday, September 30, driven by strong spot demand, hopes of a rate cut, and persisting geopolitical uncertainties. MCX Gold December futures hit a fresh record high of ₹1,17,788 per 10 grams, and MCX Silver December futures hit a fresh record high of ₹1,44,330 per kg. Around 3:10 pm, MCX Gold traded 0.52 per cent down at ₹1,15,740 per 10 grams, while MCX Silver was 1.76 per cent down at ₹1,40,578 per kg.

    Gold prices have been surging lately due to a confluence of positive triggers, including expectations of further rate cuts by the US Fed, concerns over Trump’s tariff policies, the dollar’s decline, heavy buying by central banks, and strong demand from retail investors.

    International gold prices also hit a fresh high on Tuesday, according to Reuters, and were poised for their best month in 14 years, supported by fears of a potential US government shutdown and growing expectations of further interest rate cuts.

    “Precious metals prices climbed to a record high, driven by safe-haven demand amid concerns over a potential US government shutdown and expectations of further Federal Reserve rate cuts,” Rahul Kalantri, VP of commodities at Mehta Equities, observed.

    “Talks between President Trump and Congress failed to secure short-term funding, raising the likelihood of a shutdown and possible delays in key economic data, including the September nonfarm payrolls report,” Kalantri added.

    “Gold prices rose to a fresh record high amid mounting concerns over a looming US government shutdown and expectations of further Federal Reserve rate cuts. Tariff-related concerns are also supporting gold prices. New US tariffs on heavy trucks, patented drugs, and other items are set to take effect on Wednesday,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

    The market is expecting the US Fed to further cut rates in October and December, cumulatively by 50 basis points.

    Also Read | Markets price in more US Fed rate cuts: What it means for your stock portfolio

    According to CME Group’s FedWatch tool, the market is pricing in a roughly 89 per cent chance of a 25-basis-point reduction at the next Fed meeting.

    Fed rate cuts are positive for gold prices as the yellow metal doesn’t pay interest or dividends. When the Fed cuts rates, returns from bonds and savings accounts fall. This reduces the opportunity cost of holding gold, making it a more attractive option.

    Moreover, Fed rate cuts tend to weaken the US dollar, which boosts global demand for gold. They also signal a slowing economy, driving investors toward safe-haven assets, such as gold. At the same time, lower rates raise the risk of inflation—and since gold is considered a reliable hedge against inflation, its appeal strengthens further.

    Also Read | Gold mutual funds: What they are and how to invest as gold hits record highs

    Gold and silver: What should investors do?

    Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile, but suggests buying the yellow metal above ₹1,16,000.

    “We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the global financial markets and ahead of the US non-farm employment data. We suggest buying December gold above ₹1,16,000 with a stop loss of ₹1,15,100 for the target of ₹1,17,200-1,18,000,” said Jain.

    According to Jain, gold has support at $3,832-3,810, while resistance is at $3,880-3,900 per troy ounce, and silver has support at $46.60-46.35, while resistance is at $47.40-47.70 per troy ounce in today’s session.

    MCX Gold has support at ₹1,15,650-1,15,100 and resistance at ₹1,17,200-1,18,000, while silver has support at ₹1,41,750-1,40,400 and resistance at ₹1,44,500-1,46,000.

    According to Kalantri, gold has support at $3,830-$ 3,810, while resistance is at $3,872-$3,895. Silver has support at $46.60-$ 46.30, while resistance is at $47.35-$47.70.

    In INR, Kalantri stated that gold has support at ₹1,15,000-1,14,680, while resistance is at ₹1,15,550-1,15,700. Silver has support at ₹1,42,450-1,41,850 while resistance at ₹1,43,950, 1,44,800.

    According to Trivedi, the MCX Gold December is likely to remain elevated, with ₹1,18,000 as the resistance for today.

    “For intraday today, key resistance for gold is at ₹1,18,000 per 10 grams and support is at ₹1,16,000. One should buy gold on dips,” said Trivedi.

    Read all market-related news here

    Read more stories by Nishant Kumar

    Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.



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