Is it a good time to buy gold? 3 things you should know

Gold prices in India have been on the rise over the past few days, showing upward movement in the market. According to the India Bullion and Jewellers Association, the price of gold increased from Rs 74,390 to Rs 75,680 per 10 grams. Earlier, on November 14, gold was priced at Rs 74,370 per 10 grams, indicating a considerable upward trend.
Silver prices have also climbed, with both gold and silver recording hikes on the Multi Commodity Exchange (MCX) as of Tuesday, November 19, 2024.
On the MCX, gold futures maturing on December 5, 2024, were priced at Rs 75,450 per 10 grams, reflecting an increase of Rs 403 or 0.54%. The previous close was Rs 75,047.
The rise in gold prices is attributed to a softer US dollar and increased investor interest in safe-haven assets amid geopolitical and economic concerns. Silver prices have followed a similar trend, benefiting from the overall movement in the metals market.
Geopolitical tensions – Jateen Trivedi, VP Research Analyst at LKP Securities, said that escalating tensions between Russia and Ukraine have contributed to gold’s upward momentum. US President Joe Biden’s approval for Ukraine to use long-range missiles within Russia and Moscow’s deployment of 50,000 troops have heightened global uncertainties, driving investors toward gold as a safe-haven asset.
“This geopolitical risk bolstered gold prices as investors turned to safe-haven assets. Key support for gold is seen around Rs 74,200–74,250, while resistance stands at Rs 75,100,” he added.
Interest rate speculation – The Federal Reserve’s upcoming decisions on interest rates also play a significant role. Market experts suggest that the Fed is likely to reduce borrowing costs for the third consecutive meeting in December. However, uncertainty remains, as any delays in rate cuts could impact gold prices.
Dr Renisha Chainani, Head of Research at Augmont, highlighted that gold recently retraced 50% of its rally, moving from an overbought zone to an oversold zone. She expects gold prices to continue rebounding, potentially reaching Rs 76,500.
“According to CME FedWatch Tool data, investors have recently reduced the odds from an 82% possibility of an impending drop of 25 basis points (bps) to 62%. Gold has retraced 50% of this rally from Rs 67500 to Rs 80000, and prices have shifted from the overbought zone to the oversold zone,” she said.
Market predictions – Rahul Kalantri, VP of Commodities at Mehta Equities Ltd, referred to a Goldman Sachs report projecting gold prices to hit $3,000 per ounce by December 2025. While this boosts sentiment, immediate gains may be tempered by concerns over delayed Fed rate cuts.
In rupee terms, gold is expected to find support at Rs 74,880–Rs 74,750 and face resistance at Rs 75,310–Rs 75,540. Similarly, silver is supported at Rs 90,080–Rs 89,550 and has resistance at Rs 91,350–Rs 91,980.