Mumbai — Gold prices moved higher on Thursday, recovering from a one-week low as a weaker dollar, increased safe-haven interest, and seasonal wedding demand lifted sentiment in the domestic market. The upward move came despite stronger U.S. jobs data that tempered expectations of another Federal Reserve rate cut this year.
The price of 10 grams of 24-carat gold stood at Rs 1,20,100 during intra-day trade, according to the India Bullion and Jewellers Association. On the Multi Commodity Exchange, December gold futures gained 0.74 percent to Rs 1,21,410 per 10 grams by mid-afternoon, while December silver futures rose 1.03 percent to Rs 1,48,884 per kilogram.
The U.S. dollar index eased about 0.20 percent, though it remained above the 100 level and near recent multi-month highs. U.S. 10-year Treasury yields hovered just below their highest point in nearly a month, continuing to influence global bullion pricing.
A private-sector employment report showed U.S. businesses added 42,000 jobs in October, surpassing expectations. Analysts said the data contributed to uncertainty around U.S. monetary policy but did not significantly dent physical or safe-haven demand for gold.
Market participants noted strong domestic buying ahead of India’s peak wedding season, along with firm physical demand from China and Australia. Analysts said gold is holding a key international support level near $3,870 per ounce, while silver remains supported near $46.50 per ounce on a closing basis.
“Gold and silver prices recovered from a recent low, driven by safe-haven interest amid heightened political uncertainty in the United States,” said Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd. He added that recent political developments and global market volatility may keep precious metals prices choppy.
Analysts placed near-term support for gold in the Rs 1,19,870 to Rs 1,19,280 range, with resistance seen between Rs 1,21,090 and Rs 1,21,600. Silver is also expected to trade with volatility alongside movements in the dollar index and global risk sentiment. (Source: IANS)
