Gold Hits Record Highs, Profit-Taking Likely As Markets Eye Inflation Data & ECB Meet

Mumbai: Gold prices hit lifetime highs last week on the Multi Commodity Exchange (MCX). The October contract rose to Rs 1,07,807 per 10 grams before settling at Rs 1,07,740, while the December contract peaked at Rs 1,08,840 and closed at Rs 1,08,775. Overall, the yellow metal gained nearly Rs 4,000 per 10 grams, or close to four percent, during the week.

Rally Backed by Global Factors

The rally has been driven by strong exchange-traded fund inflows, steady central bank purchases, and a sharp fall in the US dollar index. Festive buying in India and safe-haven demand amid global uncertainty also added support. On Comex, December gold futures touched USD 3,655.50 per ounce before closing at USD 3,653.30.

Analysts See Possible Profit-Taking

Analysts warn that gold has entered the overbought zone, which could trigger short-term profit booking. However, they remain positive on the broader trend, with expectations that prices may advance further towards Rs 1,10,000–Rs 1,12,000 per 10 grams if global cues remain supportive.

Data and Festive Demand to Drive Trend

The focus now shifts to inflation data from the US, China, Germany, and India, along with the European Central Bank’s policy meeting this week. Experts say festive demand in India will act as an additional cushion, making any dips an opportunity for investors to buy.