Did Gold Rise From Its One-Week Low Amid Dollar Decline and Wedding Season Demand?
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Synopsis
Gold has rebounded from its one-week low, driven by a decline in the dollar and growing demand during the wedding season. With political uncertainty and strong physical demand from countries like China and Australia, the market anticipates further volatility. Discover how these factors are influencing gold prices and the broader economic landscape.
Key Takeaways
- Gold prices have risen from a one-week low.
- A declining dollar has influenced the market.
- Peak wedding season demand is boosting precious metal purchases.
- Political uncertainty in the US adds to market volatility.
- Significant physical demand from China and Australia supports prices.
Mumbai, Nov 6 (NationPress) Gold experienced a notable increase from its one-week low on Thursday, influenced by a decline in the dollar, heightened safe-haven buying, and renewed demand as the peak wedding season approaches.
This uptick occurred despite challenges posed by stronger-than-expected US employment data, which tempered expectations for further Federal Reserve rate cuts this year.
According to the India Bullion and Jewellers Association (IBJA), the cost of 10 grams of 24-carat gold reached Rs 1,20,100 during intra-day trading.
MCX Gold December futures surged by 0.74 percent to Rs 1,21,410 per 10 grams by 2.10 pm, while MCX Silver December contracts climbed 1.03 percent to Rs 1,48,884 per kg in the same timeframe.
The dollar index saw a decline of approximately 0.20 percent but remained above the 100-mark, close to a four-month peak. Concurrently, US 10-year yields lingered just below their highest level in almost a month, exerting pressure on bullion.
According to various media reports, ADP's employment report indicated that US private employment increased by 42,000 jobs in October, exceeding estimates.
Market analysts noted that gold is sustaining its critical support level at $3,870, while silver maintains support at $46.50 per troy ounce on a closing basis.
They anticipate that precious metal prices will remain volatile this week due to fluctuations in the dollar index, global financial markets, and the impending US non-farm employment data.
"Gold and silver prices have rebounded from a week-long low, bolstered by safe-haven buying amid escalating political uncertainty in the United States. The recent loss of the New York City mayoral elections by the US President’s party has intensified concerns ahead of the upcoming mid-term elections," stated Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Significant physical demand from China and Australia has also supported precious metals, he added. Analysts have set gold's support levels at Rs 1,19,870-1,19,280 and resistance at Rs 1,21,090-1,21,600.
Point of View
It’s imperative to recognize the ongoing dynamics in the gold market. The interplay of currency fluctuations, political developments, and consumer demand highlights the intricate nature of economic indicators. With gold maintaining its support levels and the implications of US employment data, our outlook remains cautious yet optimistic for investors navigating this complex landscape.
NationPress
06/11/2025
Frequently Asked Questions
What are the current gold prices?
As of now, the price of 10 grams of 24-carat gold is Rs 1,20,100.
What influenced the recent rise in gold prices?
The rise is attributed to a decline in the dollar, safe-haven buying, and heightened demand from the wedding season.
What are the support and resistance levels for gold?
Analysts have identified support levels at Rs 1,19,870-1,19,280 and resistance at Rs 1,21,090-1,21,600.
How did US jobs data impact the gold market?
Stronger-than-expected US jobs data dampened expectations for further Federal Reserve rate cuts, affecting gold prices.
What is the outlook for gold prices this week?
Prices are expected to remain volatile due to fluctuations in the dollar index and upcoming US non-farm employment data.
