Gold Prices In India Outlook On October 18, 2024: How Will 24K/22K/18K React On Friday?

Gold prices in India are at a fresh all-time high, tracking international prices, owing to a sharp decline in bond yields and a surge in appetite for safe-haven amidst rising geopolitical tensions. 24K/10 grams gold price crossed the Rs 78,000 mark and MCX gold futures soared over the Rs 77,000 limit. There is potential for further gains, as demand for yellow metal persists. Also, gold is expected to witness buying interest in the near term.

Gold Prices In India: 24K gold price is at Rs 78,100 per 10 grams, while 22K and 18K prices surged to record highs of Rs 71,600 and Rs 58,580 per 10 grams respectively.

Gold Prices City-Wise: In major cities like Chennai, Mumbai, Kolkata, Kerala, Hyderabad, Bangalore, and Pune, 24K gold price is at Rs 78,110 per 10 grams. While gold price was higher at Rs 78,260 per 10 grams in 24K in Delhi, and the price was at Rs 78,160 in Vadodara and Ahmedabad.

Silver Prices In India And City-Wise: 1 kg silver is available at Rs 97,000 currently. The price was higher at Rs 1,03,000 in Chennai, Kerala and Hyderabad. Silver was cheaper in Bangalore at Rs 94,000 per 1kg.

MCX Gold, Silver Prices: MCX Gold futures with December expiry ended at Rs 77,111 per 10 grams on October 17. While silver futures stood at Rs 91,778 per 1kg.

Spot Gold, US Gold Futures: As per a Reuters report, gold prices charged to an all-time high on Thursday, as expectations of more interest rate cuts by the U.S. Federal Reserve and uncertainty over the U.S. presidential election boosted demand for bullion. Spot gold rose 0.5% to $2,686.46 per ounce by 1126 GMT, after hitting a record high of $2,688.82 earlier in the day. U.S. gold futures gained 0.4% to $2,702.20.

Also, Kaynat Chainwala, AVP-Commodity Research, Kotak Securities said, "Comex gold prices surged past $2,700 an ounce on Wednesday, bolstered by falling US Treasury yields and strong safe-haven demand amid escalating geopolitical tensions. However, prices pulled back from higher levels due to a stronger dollar. Despite this, safe-haven bids stemming from heightened tensions in the Middle East, particularly following Israel's strikes on Hezbollah in Lebanon, helped limit the decline, allowing COMEX gold to close 0.5% higher at $2,691.30 per ounce."

Gold Price Outlook On October 18:

Giving outlook for yellow metal, Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services said, "Gold continues to trade positive and has hit yet another all-time high with COMEX Dec. future briefly moving above $2700 per ounce, supported by expected rate cuts from global central banks, renewed buying among ETF investors, and safe-haven demand from geo-political tensions. However, gains are likely to be capped due to profit-booking and a stronger greenback in the overseas market."

Further, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities highlighted that the gold prices extended their rally, surpassing $2,685 in Comex with gains of $13, while in MCX, gains of ₹300 pushed prices close to ₹77,000, marking all-time highs once again. This rally is being driven by growing uncertainty in the returns of risky assets, making gold an attractive allocation for investors.

Looking ahead, Trivedi said, "The ongoing geopolitical tensions in the Middle East, coupled with expectations of further interest rate cuts, continue to support the upward momentum in gold prices."

Support and resistance:

On October 18, as per Trivedi, the precious metal has strong support near ₹76,300-₹76,500 in MCX, which should provide a cushion during any minor corrections. On the upside, resistance is now seen extending toward ₹77,250-₹77,450, with the potential for further gains if safe-haven demand persists. As global uncertainties remain elevated, gold could continue to see buying interest in the near term.

Additionally, Mer added, "On chart... trend remains positive till prices are above 76600/ 76450, upside prices may test Target at 77080/ 77250."