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Gold prices rose in early trade on Wednesday, November 12, as the US dollar weakened and renewed optimism that the US Federal Reserve may cut interest rates in December.
On the Multi Commodity Exchange (MCX), gold December futures rose 0.34% to Rs. 1,24,333 per 10 grams, while silver December contracts advanced 0.51% to Rs. 1,55,480 per kilogram. The uptick mirrors gains in global markets, where spot gold extended its winning streak for a fourth consecutive session.
In Mumbai, gold prices edged lower. The price of 24-carat gold fell to Rs. 12,551 per gram from Rs. 12,584 a day earlier, while 10 grams traded at Rs. 1,25,510 compared to yesterday’s Rs. 1,25,840.
Similarly, 22-carat gold slipped to Rs. 11,505 per gram from Rs. 11,535, with the 10-gram price easing to Rs. 1,15,050 from Rs. 1,15,350.
In Chennai, gold prices edged slightly lower. The price of 24-carat gold fell to Rs. 12,656 per gram from Rs. 12,764 a day earlier, while 10 grams traded at Rs. 1,26,560 compared to yesterday’s Rs. 1,27,640.
Similarly, 22-carat gold slipped to Rs. 11,600 per gram from Rs. 11,700, with the 10-gram price easing to Rs. 1,16,000 from Rs. 1,17,000.
Globally, spot gold climbed 0.4% to $4,142.70 per ounce, reaching its highest level since October 23. US gold futures for December delivery were up 0.8% at $4,149.20 per ounce, reflecting sustained investor demand for safe-haven assets.
The dollar index dipped to 99.46, its lowest in more than a month, making gold cheaper. SPDR Gold Trust, the world's largest gold-backed ETF, said its holdings increased to 1,046.36 metric tons, indicating renewed institutional interest.
According to CME Group’s FedWatch Tool, traders now assign a 68% probability of a 25 bps cut, up from 64% previously.
Also Read: Why Gold Is Still a Safe Haven for Indian Investors
Analysts expect gold to maintain its bullish tone in the near term, though short-term volatility remains likely due to profit-booking.
Gold has support at Rs. 1,23,450 and Rs. 1,22,880, with resistance around Rs. 1,24,850 and Rs. 1,25,400. Silver is expected to find support near Rs. 1,53,850, while resistance is positioned at Rs. 1,55,940.
Manoj Kumar Jain of Prithvifinmart Commodity Research echoed a similar sentiment, advising traders to buy on dips. “Gold can be accumulated near Rs. 1,23,300 with a stop loss at Rs. 1,22,500 for a target of Rs. 1,25,000. Similarly, silver can be bought for around Rs. 1,53,800-Rs. 1,53,000 targeting Rs. 1,55,000 and Rs. 1,56,600,” he said.
