Gold prices have surged to a lifetime high of Rs 1,16,203.00 per 10 grams, with December futures trading at Rs 1,15,801.00 on MCX, gaining Rs 910.00 or 0.80%. International gold prices reached $3,836.00 per troy ounce on COMEX, up $27.00 or 0.71%. The rally was driven by economic uncertainties from US tariff policies, geopolitical tensions, and dollar weakness. A weaker rupee against the US dollar further boosted domestic returns.

Technical Analysis

Technical analysis shows gold's Relative Strength Index (RSI) at 75, indicating overbought conditions but maintaining bullish momentum above 70. Key support levels are identified at Rs 1,13,800.00-Rs 1,14,000.00, with resistance at Rs 1,16,500.00 and Rs 1,17,200.00.

Market Strategy

LKP Securities recommends a buy-on-dips strategy near Rs 1,15,000.00 with a stop loss at Rs 1,13,800.00 and a target of Rs 1,16,500.00. The analyst notes that gold is pricing in trade tariff concerns and expected Federal Reserve rate cuts.

Factors Influencing Gold Prices

Economic Uncertainties

US tariff policies and geopolitical tensions are contributing to gold's appeal as a safe-haven asset.

Dollar Weakness

A weaker US dollar is making gold more attractive to international investors.

Monetary Policy Expectations

The market is factoring in potential Federal Reserve rate cuts.

Technical Momentum

Despite overbought conditions, gold maintains bullish momentum.

Looking Ahead

Investors and analysts are focusing on upcoming economic indicators, particularly the non-farm payrolls and jobless claims data, which could further influence gold prices and monetary policy expectations.

As Navratri celebrations are in full swing and Diwali approaches, investors and festive shoppers are turning their attention to gold, a traditional favorite for Dhanteras. This year, buyers have a variety of options to choose from, catering to both novice and experienced investors. Here's a comprehensive guide to five popular gold investment methods for the upcoming festive season.

1. Traditional Gold Jewellery

Gold jewellery remains a conventional choice for many during festivals. While it offers the dual benefit of adornment and investment, buyers should be aware that it comes with additional making charges, which can impact the overall investment value.

2. Gold Coins and Bars

For those focused purely on investment, gold coins and bars present an attractive option. Available from banks and jewellers, these products don't incur extra making charges, potentially offering better value for money compared to jewellery.

3. Gold Mutual Funds and ETFs

Investors looking for a more modern approach can consider gold mutual funds and Exchange Traded Funds (ETFs). These financial instruments are tradeable on stock exchanges and eliminate the need for physical storage, offering convenience and security.

4. Digital Gold

The tech-savvy investor might prefer digital gold, available through various fintech platforms. This option allows for online purchase and provides flexibility in terms of investment amounts.

5. Gold Options

For more sophisticated investors, gold options offer a way to engage with the precious metal market. These contracts provide rights to buy or sell gold at predetermined prices, allowing for strategic investment planning.

Important Considerations

• Documentation: Investors planning to purchase physical gold worth more than Rs 2 lakh should be prepared to provide PAN card documentation.
• Account Requirements: To invest in Gold ETFs, individuals need to have trading and Demat accounts with brokerage firms.

Investment Perspective

Gold continues to be viewed as a hedge against inflation, making it an attractive option for both first-time buyers and seasoned investors. As the festive season unfolds, these diverse investment options provide flexibility to align gold purchases with individual financial goals and preferences.

Whether opting for traditional jewellery or modern financial instruments, investors are encouraged to consider their long-term financial objectives and risk tolerance when choosing a gold investment strategy this Dhanteras and Diwali season.