Gold prices eased by 0.51% to settle at ₹77,317 per 10 grams as a stronger dollar triggered profit-taking. The dollar remained near two-year highs, driven by expectations of prolonged elevated U.S. interest rates and concerns over potential tariffs under the incoming Trump administration. Weekly jobless claims data underscored the resilience of the U.S. labor market, diminishing gold’s appeal as a safe-haven asset.
Market sentiment was further weighed down by uncertainty surrounding Donald Trump’s second term and inflationary pressures anticipated from his proposed trade policies.
Global Trends in Gold Demand
The World Gold Council reported that central banks are expected to sustain gold purchases into the next year, supporting medium-term price stability. In October, net central bank gold purchases hit 60 tons, doubling the 12-month average. India led the trend, adding 27 tons in October, bringing its year-to-date (YTD) total to 77 tons—a five-fold increase compared to 2023. Turkey and Poland also saw strong demand, with YTD purchases of 72 tons and 69 tons, respectively, emphasizing robust interest from emerging markets.
Regional Physical Gold Markets
In India, gold discounts persisted at $14 per ounce due to high domestic prices. Conversely, Chinese premiums rose to $4.50–$10 per ounce ahead of the Chinese New Year, reflecting strong regional demand. Premiums also increased in key markets like Singapore and Hong Kong, signaling sustained interest in physical gold.
Technical Outlook
The market saw long liquidation, with open interest declining by 2.04% to 12,620 contracts. Key support for gold is at ₹77,075, with further downside potentially testing ₹76,825. Resistance is positioned at ₹77,760, and a breakout above this level could push prices toward ₹78,195.
