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On Thursday, November 13, gold prices rose in early trade due to a weak US dollar and expectations for a Federal Reserve rate cut next month. The price action comes after the US government ended a record 43-day shutdown.
Gold December futures were up 0.37% to Rs. 1,26,935 per 10 grams on the MCX while silver December contracts moved up 1.70% to Rs. 1,64,854 a kilogram.
In Mumbai, gold prices saw a sharp increase. The price of 24-carat gold peaked at Rs. 12,780 per gram versus Rs. 12,551 a day earlier while the price of 10 grams of gold reached Rs. 1,27,800, while the price of 10 grams was valued at Rs. 1,25,510 yesterday.
Similarly, 22-carat gold increased to Rs. 11,715 per gram from Rs. 11,505 and the price of 10 grams of gold reached Rs. 1,17,150 from Rs. 1,15,050.
In Chennai, gold prices slightly improved. The price of 24-carat gold increased to Rs. 12,873 a gram from Rs. 12,656 a day earlier with a price of Rs. 1,28,730 for 10 grams versus Rs. 1,26,560 the previous day.
Similarly, 22-carat gold increased to Rs. 11,800 a gram from Rs. 11,600, with the price of 10 grams increasing to Rs. 1,18,000 from Rs. 1,16,000.
In the international markets, gold has support at $4,140 and $4,100 with resistance at $4,240 and $4,265 per ounce. Silver has support at $52.50 and $52.10 with resistance at $53.75 and $54.20 per ounce.
In the domestic market, support lies at Rs. 1,25,750 and Rs. 1,24,980, while resistance is noted at Rs. 1,27,750 and Rs. 1,28,400 per 10 grams.
For silver, support is around Rs. 1,60,950 and Rs. 1,59,400, with resistance pegged at Rs. 1,63,850 and Rs. 1,64,900 per kg.
Also Read: Why Gold Is Still a Safe Haven for Indian Investors
In the global market, spot gold was marginally lower by 0.1% at $4,194.63 per ounce after reaching a three-week peak on Wednesday, while US gold futures decreased by 0.3% to $4,199.30. Spot silver was unmoved at $53.37 per ounce, platinum added 0.1% to $1,616.24, and palladium dropped 0.6% to $1,465.21.
Bullion prices surged after U.S. President Donald Trump signed a temporary funding measure, which terminated the government shutdown that began on October 1.
Analysts think that the reopening of the government for business will enable the release of other economic indicators that were held up and allow the Fed more certainty before its meeting in December.
Now the market is feeling mostly priced in for a rate cut, which typically brings support for gold prices due to the weakening dollar and yields.
