Gold prices jump over 1 percent due to festive demand

Gold prices saw a strong rise on Tuesday as expectations of a US Federal Reserve rate cut and festive season demand boosted sentiment.

In early trade on the Multi Commodity Exchange (MCX), gold futures for December delivery were up 1 per cent at Rs 1,25,106 per 10 grams around 9:47 am. Silver prices also moved higher.

MCX Silver December contracts



were trading 1.34 per cent higher at Rs 1,56,551 per kg during the same time. “In INR gold has support at Rs1,23,150-1,22,580 while resistance at Rs1,24,650-1,25,200,” analysts said.

“Silver has support at Rs 1,53,650-1,52,800 while resistance at Rs 1,56,140, 1,57,000,” they added. The sharp move in the domestic market followed a strong rally in global prices.