Gold edged slightly higher during early trading on Friday, November 7, as a weakening US dollar, coupled with growing expectations for a possible Fed rate cut in December, provided support. On the Multi-Commodity Exchange (MCX), Gold December futures increased 0.27% to Rs. 1,20,939 per 10 grams, while Silver December futures were up 0.60% to Rs. 1,47,938 per kg.
The uptrend followed the global precious metals markets, which opened positively, with spot gold prices rising as the US dollar index fell below 100, making gold cheaper for investors.
In Mumbai, gold prices edged slightly higher. The price of 24-carat gold rose to Rs. 12,258 per gram from Rs. 12,257 a day earlier, while 10 grams traded at Rs. 1,22,580 compared to Rs. 1,22,570 the previous day.
Similarly, 22-carat gold rose to Rs. 11,236 per gram from Rs. 11,235, with the 10-gram price gaining to Rs. 1,12,360 from Rs. 1,12,350.
In Chennai, gold prices edged slightly lower. The price of 24-carat gold fell to Rs. 12,295 per gram from Rs. 12,349 a day earlier, while 10 grams traded at Rs. 1,21,950 compared to yesterday’s Rs. 1,23,490.
Similarly, 22-carat gold slipped to Rs. 11,270 per gram from Rs. 11,320, with the 10-gram price easing to Rs. 1,12,700 from Rs. 1,13,200.
According to Manoj Kumar Jain, Head of Commodity Research at Prithvifinmart, gold and silver are holding crucial support levels.
He noted that gold is finding support near $3,960 and $3,922 per troy ounce, while resistance levels are placed around $4,028 and $4,054.
On the domestic front, Jain said gold has support at Rs. 1,20,000 and Rs. 1,19,400, with resistance at Rs. 1,21,200 and Rs. 1,21,850.
Silver prices have support around Rs. 1,46,100 and Rs. 1,45,000, while resistance is positioned at Rs. 1,48,200 and Rs. 1,49,400.
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Globally, gold is drawing support from fears about the prolonged US government shutdown, now the longest in US history, along with a sharp increase in corporate layoffs in October.
According to Challenger, Gray & Christmas, layoffs rose 183%, the highest increase in over two decades, triggering concerns about weakening labor market conditions.
The probability of a Federal Reserve cut next month has increased to 69% from 62%, a positive factor for gold and other non-yielding assets.