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On Friday, November 13, gold prices resumed their rise owing to a weak US dollar and expectations of a Federal Reserve rate cut next month, following the US government's end to a record 43-day government shutdown.
Gold December futures were up 0.12% to Rs. 1,26,905 per 10 grams on the MCX while silver December contracts moved up 0.21% to Rs. 1,64,805 a kilogram.
In Mumbai, gold prices fell. The price of 24-carat gold fell to Rs. 12,785 per gram compared to Rs. 12,865 a day earlier, while 10 grams traded at Rs. 1,27,850 compared to Rs. 1,28,850 yesterday.
Similarly, 22-carat gold slipped to Rs. 11,720 per gram from Rs. 11,790, with the 10-gram price easing to Rs. 1,17,200 from Rs. 1,17,900.
In Chennai, gold prices edged lower. The price of 24-carat gold fell to Rs. 12,916 per gram from Rs. 12,982 a day earlier, while 10 grams traded at Rs. 1,29,160 compared to yesterday’s Rs. 1,29,820.
Likewise, 22-carat gold declined to Rs. 11,840 per gram from Rs. 11,900, with the 10-gram value decreasing to Rs. 1,18,400 from Rs. 1,19,000.
While the upward trend for gold is favorable, it has nonetheless been subdued by hawkish remarks from several Federal Reserve officials after the Fed has now cut rates twice this year, including a 25-basis-point cut last month.
Even so, officials have stressed they need more convincing evidence prior to easing. Accordingly, traders are now estimating a 51% chance of a December cut, down from 64% just one day ago.
Furthermore, markets got a brief reprieve by the US government reopening after a record-setting 43-day shutdown.
Rahul Kalantri of Mehta Equities added that gold is likely to find support in the $4,140-$4,100 zone, while facing resistance around $4,240-$4,265. He stated that silver is expected to remain supported near $52.50-$52.10, with resistance emerging between $53.75-$54.20.
In domestic terms, gold is likely to test support at Rs. 1,25,750-Rs. 1,24,980, whereas resistance levels lie between Rs. 1,27,750-Rs. 1,28,400.
Also Read: Why Gold Is Still a Safe Haven for Indian Investors
In the international markets, spot gold was 0.4% higher to $4,188.93 an ounce - a weekly gain of 4.8%. The US gold futures were unchanged, at $4,191.90 an ounce, indicating stable short-term market sentiment.
In silver, spot prices increased another 1.2% to $52.95 an ounce and had their strongest week since September 2024 with gains of nearly 9.6%. In the platinum markets, platinum was 1% higher to $1,596.24 an ounce, while palladium was 1.2% higher to $1,443.55 an ounce.
