Following a brief pause earlier this week, gold and silver prices are once again displaying strength, buoyed by a combination of global uncertainty, increased safe-haven demand, and a weaker dollar. Analysts suggest that the recent correction observed in the past few sessions is more of a temporary halt than a complete reversal, indicating that the upward momentum might continue.
This Friday morning, gold futures on the MCX were trading at approximately Rs 1,21 lakh per 10 grams, while silver prices were above Rs 1,48 lakh per kg. Both precious metals have bounced back from their recent one-week lows, supported by a declining US dollar and fresh geopolitical tensions.
Gold and Silver Prices See Ongoing Gains
Rahul Kalantri, VP Commodities at Mehta Equities, highlighted that the general sentiment in the bullion market remains positive despite occasional profit-taking.
“The session began on a positive note for precious metals but later saw a pullback from intraday highs due to profit booking by traders,” he stated. “Despite this selling pressure, gold and silver are well-supported at lower levels. The dollar index has decreased from its peak of three months ago, and concerns surrounding the US government shutdown are pushing investors towards safe-haven assets.”
Kalantri emphasized that persistent geopolitical risks and weak US data are positioning gold favorably for a potential upward movement. “From a technical standpoint, gold’s crucial level to watch is $3,855, and silver is holding firm around the $46.70 support area,” he explained. “In terms of the rupee, gold has support levels between Rs 1,19,870–1,19,280 and resistance levels at Rs 1,21,090–1,21,600. Silver is supported around Rs 1,45,750 with resistance near Rs 1,48,340.”
Increased Safe-Haven Buying Activity
The latest report from Augmont Gold For All, authored by Dr. Renisha Chainani, Head of Research, indicates growing concerns within the US economy as a new driver for safe-haven purchases. “Gold and silver prices are striving to establish a foundation before the next upward surge, following the confirmation of supporting factors such as significant layoffs and the ongoing US government shutdown,” the report indicated.
In October, US job losses skyrocketed to the highest level in two decades, with 153,074 job cuts—a 183% increase from September—marking the worst October for layoffs since 2003. “This has been the most severe year for layoffs since 2009,” Chainani pointed out. “As the US government experiences its longest shutdown ever, investors are eagerly awaiting economic data from private sources due to the absence of official data.”
The disappointing labor market statistics have reinforced the belief that the US Federal Reserve might need to adopt a more dovish approach, which typically benefits non-yielding assets like gold.
Supporting this sentiment, Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, mentioned that gold is receiving backing from both technical and fundamental aspects.
Trivedi forecasted ongoing volatility in the short run. “Gold’s price is anticipated to remain fluctuating within a range of Rs 1,19,500–