Gold prices logged their strongest weekly gain since August with a 4.5 per cent surge. Meanwhile, crude oil suffered its steepest weekly decline since April 2020.
Concerns surrounding the global artificial intelligence sector drove sharp capital flows from equity markets to commodity markets. A changing Federal Reserve outlook also bolstered sentiment for precious metals.
Hopes of key policy shifts following the US midterm elections triggered the crude market collapse. Both WTI and Brent benchmarks posted massive weekly declines exceeding 12 per cent.
WTI crude retreated from above $105 a barrel to around $90. Similarly, Brent crude eased to the $98 range during the week.
On Friday, MCX gold futures expiring in December declined 1.20 per cent. Conversely, MCX silver futures for December advanced 0.10 per cent.
MCX gold futures stood at Rs 1,42,364 at the close. Meanwhile, silver futures reached Rs 1,84,977 per kg.
According to the India Bullion and Jewellers Association, 24-carat gold rose to Rs 1,41,452 per 10 grams. This price jumped from Rs 1,40,054 recorded at the previous week’s close.
Bullion prices retreated from intraday highs after a strong US employment report lifted the dollar. Rising Treasury yields further constrained late-week market momentum.
The US economy added 165,000 nonfarm payroll jobs in October. This figure easily beat market expectations of 65,000 additions.
The US unemployment rate also edged down to 4.1 per cent from 4.2 per cent. The robust data raised the probability of a December Fed rate hike to 81 per cent.
Though the Fed held rates steady in October, officials hinted at future increases. Two policymakers favored gradual tightening to contain persistent inflation.
In response, the 10-year US Treasury yield approached 4.88 per cent. A strengthening US dollar renewed downward pressure on precious metals toward Friday’s close.
Lower international bullion prices attracted physical buying in India ahead of Diwali. However, expectations of higher borrowing costs limited the sustainability of gold’s recovery.
Analysts place immediate resistance for MCX Gold between Rs 1,43,000 and Rs 1,43,700. Downside support rests in the Rs 1,41,000 to Rs 1,40,000 range.
Meanwhile, immediate resistance for MCX Silver stands between Rs 1,86,000 and Rs 1,88,000. Key support levels remain between Rs 1,78,000 and Rs 1,80,000.
🌐 Stay Connected with The Avenue Mail
Get the latest news and breaking updates delivered instantly to your feed.
🟢Join our WhatsApp Group: Click here to join
📢 The Avenue Mail: Your trusted source for real-time news.
