On Monday, November 10, Gold prices rose sharply in the early trade as investors reacted positively to potential US Federal Reserve rate cuts in December and the US dollar weakness.
On the Multi Commodity Exchange (MCX), Gold December futures surged 1.04% to Rs. 1,22,330 for 10 grams, and Silver December contracts increased 1.76% to Rs. 1,50,325 per kg.
The rebound in bullion prices has been supported by soft US economic data, which has reinforced expectations that the Fed may ease monetary policy sooner than expected.
In Mumbai, gold prices rose sharply. The price of 24-carat gold rose to Rs. 12,322 per gram from Rs. 12,202 a day earlier, while 10 grams traded at Rs. 1,23,220 compared to yesterday’s Rs. 1,22,020.
Similarly, 22-carat gold rose to Rs. 11,295 per gram from Rs. 11,185, with the 10-gram price reaching Rs. 1,12,950 from Rs. 1,11,850.
In Chennai, gold prices edged slightly higher. The price of 24-carat gold rose to Rs. 12,448 per gram from Rs. 12,328 a day earlier, while 10 grams traded at Rs. 1,24,480 compared to Rs. 1,23,280 the previous day.
Similarly, 22-carat gold rose to Rs. 11,410 per gram from Rs. 11,300, with the 10-gram price gaining to Rs. 1,14,100 from Rs. 1,13,000.
Gold is on the rebound after a brief pullback from record highs seen in October as investors reassess global economic risks. Recent US economic data showing slowing growth in jobs, weak consumer sentiment, and an ongoing government shutdown in its 40th day have shaken investor sentiment.
The CME FedWatch Tool indicates a 67% probability of a rate reduction in December.
“Gold gained over 1% amid growing concerns over the US economy and the longest-ever government shutdown,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
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In global markets, spot gold traded 0.7% higher at $4,027.88 per ounce, while US gold futures rose to $4,036.60 per ounce. Spot silver gained 1.1% to $48.84 per ounce.
The rise across precious metals reflects a shift in investor sentiment toward safe-haven assets, amid persistent macroeconomic uncertainty and falling real yields.
Jain expects gold to trade between $3,870-$4,140 per ounce and silver between $45.50-$50.50 per ounce. On MCX, gold has support at Rs. 1,20,550-Rs. 1,20,100 and resistance at Rs. 1,21,660-Rs. 1,22,200.