Gold prices experienced a significant increase on Monday, with the MCX December futures rising more than 1%, or by Rs 1,223, to reach Rs 1,22,290 per 10 grams. This surge was driven by a resurgence in safe-haven demand, prompted by disappointing U.S. consumer sentiment data and a lackluster jobs report. Furthermore, silver futures commenced robustly on the MCX, increasing by Rs 2,872 or 1.94% to Rs 1,50,600 per kilogram. The white metal reflected gold’s upward trajectory, bolstered by demand for safe-haven assets. Internationally, spot gold increased by 0.7%, reaching $4,027.88 per ounce as of 0115. U.S. gold futures for December delivery increased by 0.7%, reaching a price of $4,036.60 per ounce. In October, the U.S. economy experienced a decline in employment, particularly within the government and retail sectors. Concurrently, the implementation of cost-cutting measures and the integration of artificial intelligence by businesses resulted in a notable increase in announced layoffs, as indicated by recent data.
In early November, U.S. consumer sentiment declined to its lowest point in almost three and a half years, reflecting concerns regarding the economic repercussions of the longest government shutdown in U.S. history, according to a survey released on Friday. This facilitated safe-haven purchasing for precious metals. Market participants currently assign a 67% probability to a rate cut by the Federal Reserve in December, as per reports. Gold, which does not yield interest, typically performs favorably in environments characterized by low interest rates and periods of economic uncertainty. On Friday, gold and silver concluded the trading session with gains in both domestic and international markets. The December futures contract for gold concluded at Rs 1,21,067 per 10 grams, reflecting an increase of 0.38%. Meanwhile, the December futures contract for silver settled at Rs 1,47,728 per kilogram, marking a gain of 0.45%.
Gold and silver exhibit significant price volatility, rebounding from lower levels in response to disappointing U.S. consumer sentiment data and the prevailing uncertainty surrounding the conclusion of the U.S. shutdown. The dollar index experienced a decline from its recent peaks, influenced by the U.S. shutdown, which in turn bolstered gold and silver prices. Today, the US Dollar Index was hovering near the 99.64 mark, gaining 0.04 or 0.04%. “Gold is maintaining its critical threshold of $3,870, while silver is sustaining its support level of $45.50 per troy ounce on a weekly closing basis. Gold and silver prices are anticipated to exhibit volatility this week, influenced by fluctuations in the dollar index and instability in global financial markets, particularly in the lead-up to U.S. inflation data and the ongoing uncertainty surrounding the conclusion of the U.S. shutdown. Gold is projected to trade within a range of $3,870-4,140 per troy ounce, while silver is expected to fluctuate between $45.50-50.50 per troy ounce this week, according to Manoj Kumar Jain.
Gold exhibits support levels ranging from Rs 1,20,550 to Rs 1,20,100, while resistance is observed between Rs 1,21,660 and Rs 1,22,200. Silver exhibits support levels between Rs 1,46,800 and Rs 1,45,500, while resistance is observed in the range of Rs 1,49,200 to Rs 1,50,150. Jain recommends accumulating gold and silver during price dips, provided they maintain their support levels of Rs 1,17,700 and Rs 1,44,000, respectively, based on daily closing figures. The price of standard gold (22 carat) in Delhi is currently Rs 91,840 for 8 grams, whereas the price for pure gold (24 carat) is Rs 98,712 for the same quantity. The price of standard gold (22 carat) in Mumbai is currently Rs 90,840 for 8 grams, whereas the price for pure gold (24 carat) is Rs 97,616 for the same quantity. The price of standard gold (22 carat) in Chennai is currently Rs 90,400 for 8 grams, whereas the price for pure gold (24 carat) is Rs 97,152 for the same quantity. The price of standard gold (22 carat) in Hyderabad is currently Rs 90,520 for 8 grams, whereas the price for pure gold (24 carat) is Rs 97,280 for the same quantity.