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Below the Quote on Gold by Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities

"Gold prices continued their strong upward momentum, with a sharp rise of Rs.500 in MCX, taking the price to Rs.77,600, supported by Comex gold surging above $2,710. This robust strength is largely driven by the expectation of ongoing interest rate cuts in the US, with further reductions anticipated in the near future. The broader trend in MCX gold has been distinctly positive since it hit lows below Rs.68,000 earlier in the year, and the current rally to above Rs.77,500 represents a significant appreciation.

For 2024, gold has already delivered impressive returns of over 22%, and on a Diwali-to-Diwali basis, returns have reached nearly 30%. This makes gold one of the standout performers for the year. Looking ahead, the price momentum remains strong, with a potential upside target of Rs.78,500 in the coming sessions. On the downside, the key support level is seen around Rs.75,000, providing a solid base for any short-term pullbacks. As long as the interest rate cut expectations and geopolitical tensions persist, the bullish outlook for gold should remain intact."

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