The bullion trade expects prices to rise further in the coming week and a fall in prices from the current highs is an opportunity to buy gold, with no sign of a market correction anytime soon.
On Tuesday, with Goods and Services Tax (GST) at 3%, gold was available at Rs 1.4 lakh per 10 grams. In the international market, gold prices crossed $4500 per troy ounce for the 50th record session this year, while silver hit a new high of $70 per troy ounce on expectations of looser US monetary policy and rising geopolitical tensions.
“Gold has touched the target resistance of $4,500 per troy ounce. Gold has broken the previous high of $4,400 after a two-month consolidation between $3,935 and $4,400, so the rally is expected to extend to $4,575 and $5,000 in a few weeks,” said Head of Gold (Runisha Chainarchet).
Silver has also touched the first target resistance of $70 per troy ounce. “If silver continues its bullish momentum, the next target is $72 per troy ounce. The uptrend will remain intact until the price trades above the $67.50 support,” Chainani added. The price of silver in the retail market on Tuesday was ₹ 2.09 lakh per kg.
Gold trade expects prices to touch ₹1.38 lakh-1.4 lakh (without GST) by January 2026. “Consumers are also not exchanging old gold for new jewelery as demand has slowed down due to sustained rise in prices. Households are also not liquidating old gold. Still, the yellow metal prices are expected to rise.” Mehta of India Bullion and Jewelers Association.
Markets are pricing in two quarter-point rate cuts by the Federal Reserve next year, despite evidence of softening inflation and a cooling labor market, pushing up prices for the yellow metal.
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