Gold and silver prices extended sharp gains on Wednesday, 4 November 2026, surging up to 3 per cent in both domestic and international markets, buoyed by a weaker US dollar, lower Treasury yields, and persistent geopolitical uncertainty. The rally marks a strong recovery after a steep decline in the previous session.

Domestic Market Performance

In the Indian spot market, 24-karat gold climbed 1.4 per cent to touch ₹1,41,980 per 10 grams as of 11:10 am IST. 999 fine silver posted a sharper rise, surging ₹4,520 per kg — or 2.5 per cent — to reach ₹1,85,000 per kg.

On the Multi Commodity Exchange (MCX), December gold futures advanced 1.76 per cent to ₹1,41,911 per 10 grams, while December silver futures jumped 3.09 per cent to ₹1,85,249 per kg. Analysts note resistance for MCX gold around ₹1,41,000 and ₹1,43,000–₹1,43,700, with a key support zone near ₹1,40,000.

Global Drivers: Dollar Weakness and Rate Signals

Internationally, COMEX gold futures rose 0.58 per cent to $3,963.20 per ounce, while COMEX silver futures gained 0.48 per cent to $49.99 per ounce, up from the previous close of $49.825 per ounce. COMEX gold faces near-term resistance in the $3,970–$4,000 range, with immediate support near $3,900.

Softer crude oil prices helped ease inflation concerns, raising hopes that central banks may have greater flexibility on monetary policy. Gold, a non-yielding asset, typically benefits from lower yields and dollar weakness. According to CME's FedWatch tool, traders currently price in a 78 per cent probability of a rate hike in December — a signal investors are watching closely alongside US labour market data and Federal Reserve commentary.

Geopolitical Uncertainty Adds Safe-Haven Demand

Russia has agreed to three-way peace talks involving Ukraine and the United States in Abu Dhabi on 10 and 11 November 2026, adding a new diplomatic dimension to an already tense geopolitical landscape. Separately, negotiations between Iran and the US remain uncertain, further bolstering safe-haven demand for bullion. This combination of unresolved conflicts continues to underpin gold's appeal as a defensive asset.

India's Gold Demand Under Pressure

Despite the price rally, India's appetite for gold has cooled noticeably. According to the World Gold Council (WGC), India's gold demand declined 29 per cent year-on-year to 162.5 tonnes in the July–September quarter of 2026. Record-high prices, higher import duties, and shifting consumer buying patterns weighed on both jewellery purchases and investment demand.

Notably, this demand contraction arrives even as prices set new highs — a divergence that analysts say reflects price sensitivity among Indian consumers, particularly in the mid-income segment that drives jewellery offtake. With the festive and wedding season now under way, the trajectory of retail demand in October–December 2026 will be a key test for the market.