New Delhi: Gold prices recorded their strongest weekly rally since August, gaining nearly 4.5 per cent, even as crude oil prices plunged more than 12 per cent amid changing global economic expectations and uncertainty over US monetary policy.
Gold Rally
Precious metals attracted investor interest as concerns over the artificial intelligence sector triggered a shift from equities towards commodities.
However, gold surrendered some gains on Friday after stronger-than-expected US employment data lifted the dollar and Treasury yields.
On the Multi Commodity Exchange (MCX), December gold futures declined 1.20 per cent to ₹1,42,364 per 10 grams, while silver futures edged up 0.10 per cent to ₹1,84,977 per kg.
According to the India Bullion and Jewellers Association (IBJA), 24-carat gold stood at ₹1,41,452 per 10 grams on Friday, compared with ₹1,40,054 at the previous week's close.
Oil Prices
Global crude oil markets witnessed heavy selling, with both major benchmarks recording weekly losses exceeding 12 per cent.
West Texas Intermediate (WTI) crude slipped from above $104–105 per barrel to around $90, while Brent crude declined towards $97–98.
Expectations of policy changes following the US midterm elections contributed to the sharp correction.
Fed Concerns
The US Federal Reserve's monetary policy outlook remained a major influence on bullion prices.
October nonfarm payrolls increased by 165,000, significantly exceeding expectations of 65,000. Meanwhile, unemployment declined to 4.1 per cent from 4.2 per cent.
The stronger labour market pushed expectations of a December interest rate hike to approximately 81 per cent.
Consequently, US Treasury yields climbed, with the benchmark 10-year yield approaching 4.88 per cent.
Price Outlook
Analysts identified immediate resistance for MCX gold at ₹1,43,000–₹1,43,700, with support between ₹1,40,000 and ₹1,41,000.
Silver faces resistance at ₹1,86,000–₹1,88,000, while support remains around ₹1,78,000–₹1,80,000.
Festive demand ahead of Diwali could support domestic buying, although higher US interest rates may restrict further gains.
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