Gold prices in India rose sharply on Tuesday, November 11, supported by strong global signals and good spot demand at home. The yellow metal gained almost 1% on the Multi Commodity Exchange (MCX), while silver also followed the upward momentum.
At 10:15 am, MCX Gold December futures were trading 0.94% higher at Rs 1,25,131 per 10 grams, while MCX Silver December contracts rose 1.16% to Rs 1,55,475 per kg.
By market close, gold stayed firm at Rs 1,24,915 (up 0.76%), and silver ended at Rs 1,55,344 (up 1.08%).
GLOBAL SIGNALS PUSH GOLD HIGHER
Market experts point to mixed global sentiment, especially around the possibility of the US government shutdown coming to an end.
Ross Maxwell, Global Strategy Lead at VT Markets, said, “Normally, an end to the uncertainty would strengthen the USD and reduce safe-haven demand for gold. However, gold prices have reacted bullishly, showing that markets may expect continued fiscal spending, rising US debt levels and a weaker USD in the medium term.”
RUPEE, WEDDINGS AND FESTIVE DEMAND IN FOCUS
India is entering the peak wedding and festive season, which historically boosts demand for bullion. Domestic prices are also influenced by the strength of the Indian rupee. A weaker rupee can make imported gold costlier.
Maxwell added, “For India, domestic gold prices typically follow international trends but are further influenced by the INR exchange rate and local demand. A stable or slightly weaker rupee will further add weight to any rise in international gold prices.”
WHERE COULD PRICES MOVE NEXT?
The near-term outlook remains bullish, but with some caution.
Maxwell said, “If the global rally continues and the rupee stays stable or weakens, prices could move toward Rs 1,26,000.”
However, he also warned of a possible correction, adding, “If US yields rise and the dollar strengthens, prices could fall to around Rs 1,10,000 with strong support near Rs 1,00,000 if the correction deepens.”
DEMAND TO STAY STEADY, BUT HIGH PRICES MAY BITE
While investor interest and wedding season demand remain strong, very high prices could slow jewellery buying.
Maxwell concluded, “The overall effect will likely be moderate upward pressure, supported by festive demand and global sentiment, with a cautiously positive short-term outlook.”
– Ends
