New Delhi, Nov 15 (NationPress) The price of 24-carat gold (10 grams) rose by Rs 4,694 during the week, thanks to increased safe haven purchases and a weakening dollar. However, it dipped from its weekly peak on Friday following the conclusion of the US government shutdown.

The closing rate for 10 grams of 24-carat gold was Rs 1,24,794, down from Rs 1,20,100 in the previous week, as reported by the India Bullion and Jewellers Association (IBJA).

In a significant drop, domestic gold prices experienced an intraday plunge of nearly Rs 5,000 per 10 gram on Friday, reaching a low of Rs 1,21,895, though prices rebounded later in the day.

The trend in gold prices aligned with the international market, which saw a decrease of $127 per troy ounce, as traders reacted to diminishing expectations for an imminent US Federal Reserve rate cut.

International bullion remained around $4,000 for the week after US Federal Reserve Chair Jerome Powell’s hawkish comments dampened hopes for rate reductions.

Market forecasts for a possible rate cut in December dropped from approximately 90 percent to nearly 60 percent, putting pressure on bullion, while the dollar index remained near 100 and USD-INR approached 89.

Analysts indicated that precious metals were on track for their most robust weekly performance in a month, propelled by uncertainty stemming from absent US economic data, which heightened demand for safe havens.

Gold prices, however, fell on Friday following the end of the US government shutdown, reducing concerns regarding economic disruption.

Analysts suggested that gold has support levels at Rs 1,25,750-1,24,980 and resistance at Rs 1,27,750-1,28,400. Silver has support at Rs 1,60,950-1,59,400 with resistance at Rs 1,63,850-1,64,900.

They predict that the current softness in bullion prices may persist in the near future unless there is a significant increase in safe haven purchases or a clear shift in the Federal Reserve’s policy direction.