Gold prices edged higher on Tuesday, November 11, supported by renewed optimism in global markets and rising expectations of a December interest rate cut by the US Federal Reserve.
On the Multi Commodity Exchange (MCX), gold December futures climbed 0.94% to Rs. 1,25,137 per 10 grams, reclaiming the Rs. 1,25,000 level. Meanwhile, silver December contracts gained 1.12% to Rs. 1,55,407 per kg.
In Mumbai, gold prices rose sharply. The price of 24-carat gold rose to Rs. 12,628 per gram from Rs. 12,382 a day earlier, while 10 grams traded at Rs. 1,26,280 compared to yesterday’s Rs. 1,23,820.
Similarly, 22-carat gold rose to Rs. 11,575 per gram from Rs. 11,350, with the 10-gram price reaching Rs. 1,15,750 from Rs. 1,13,500.
In Chennai, gold prices edged slightly higher. The price of 24-carat gold rose to Rs. 12,764 per gram from Rs. 12,524 a day earlier, while 10 grams traded at Rs. 1,27,640 compared to Rs. 1,25,240 the previous day.
Similarly, 22-carat gold rose to Rs. 11,700 per gram from Rs. 11,480, with the 10-gram price gaining to Rs. 1,17,000 from Rs. 1,14,800.
“Gold and silver are expected to stay volatile but biased to the upside. We recommend buying on dips as long as gold sustains above Rs. 1,21,000 and silver above Rs. 1,46,600 on a closing basis,” said Manoj Kumar Jain, Senior Analyst at Prithvifinmart Commodity Research.
Jain forecasts that gold could test Rs. 1,26,000, while silver may approach Rs. 1,58,000 over the next few sessions.
In dollar terms, gold is expected to trade between $3,960 and $4,220 per troy ounce, with support at $4,050-$4,084 and resistance near $4,160-$4,200.
Also Read: Why Gold Is Still a Safe Haven for Indian Investors
Internationally, gold extended gains to a near three-week high, with spot prices rising 0.4% to $4,131.83 per ounce, the highest since October 24. US gold futures also advanced 0.4% to $4,138.70 per ounce, while silver traded at $50.66 per ounce.
The rally in bullion was driven by growing conviction that the US Federal Reserve may deliver another 25 basis points rate cut in its upcoming December policy meeting. According to the CME FedWatch Tool, traders are pricing in a 64% probability of a rate reduction.
Adding to the positive sentiment, reports suggest that the prolonged US government shutdown, which began on October 1, may soon end following a Senate vote to approve a resolution backed by both parties.