Mumbai: Gold prices are expected to remain in a consolidation phase for the third consecutive week, with traders monitoring major global economic indicators and policy events, including the US Supreme Court’s tariff hearing on November 5. Analysts said volatility could persist as the market digests multiple factors influencing bullion prices.
Key Global Triggers in Focus
The focus this week will be on global manufacturing and services PMI data, China’s trade and growth numbers, and US macro releases such as ADP non-farm payroll, consumer sentiment, and inflation expectations. “The tariff hearing outcome could trigger significant market reactions, depending on its direction,” said Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services.
MCX Gold Corrects Sharply
On the Multi Commodity Exchange (MCX), gold futures for December delivery declined 1.8% to Rs 1,21,232 per 10 grams last week, retreating from highs of Rs 1,29,000. “The correction came on easing US-India tariff tensions and a strengthening dollar,” said Prathamesh Mallya of Angel One. He expects further weakness toward Rs 1,18,000 per 10 grams in the coming week.
Global Prices Retreat as Dollar Strengthens
Internationally, Comex gold futures for December delivery fell 3.41% to USD 3,996.5 per ounce, marking a second weekly decline. “Gold is down nearly 9% from its record high as traders reassess US rate-cut expectations,” said Riya Singh of Emkay Global Financial Services.
Silver Finds Support, Central Banks Continue Buying Gold
On the MCX, silver futures for December delivery rose 0.55% to Rs 1,48,287 per kilogram, snapping a two-week losing streak. Despite silver’s sharper fall—about 14% from its peak—central bank demand for gold remains strong. According to the World Gold Council, official purchases rose 28% in Q3, led by Kazakhstan and Brazil, with full-year buying expected at 750–900 tonnes.
Outlook: Range-Bound Trade Likely
Technically, Mer expects gold to face resistance at Rs 1,23,000 and silver at Rs 1,51,000, with support at Rs 1,18,000 and Rs 1,43,500 respectively—indicating continued consolidation ahead.
