US gold futures dropped 0.2% to $2,670.90.
In India, 24-carat gold costs ₹7,794.3 per gram, down ₹20 from the previous day.
Similarly, 22-carat gold is priced at ₹7,146.3 per gram, also reflecting a ₹20 decline.
Ajay Kedia, director at Kedia Commodities, expressed optimism about gold’s long-term outlook.
“Prices have strong support near $2,600. We expect gold to test $3,000 by March 2025, driven by geopolitical factors, de-dollarisation, and central bank buying,” he said.
Fed Chair Jerome Powell noted that the US economy remains robust, tempering expectations of aggressive rate cuts.
San Francisco Fed President Mary Daly reiterated a cautious approach, stating there’s “no sense of urgency” to lower rates further.
Investor focus on US data and other details
Traders are now eyeing Friday’s US payrolls report and next week’s inflation data. The CME Group’s FedWatch Tool shows a 74% probability of a 25-basis-point rate cut in December, indicating potential policy easing.
ANZ analysts predict that gold may consolidate in the short term due to a stronger US dollar.
“Gold prices, after outperforming this year, could take a breather. Dollar strength remains a key headwind,” the note added.
In India, gold demand remains elevated due to marriage season purchases and the Reserve Bank of India’s (RBI) aggressive buying.
The RBI added 27 tonnes of gold in October, bringing total holdings to 77 tonnes this year, making it the world’s largest gold buyer in 2024.
The outlook
Renisha Chainani, Head of Research at Augmont, highlighted, “Risk aversion over China’s economic concerns and the Fed’s unclear rate-cut path are stabilizing gold prices at $2,650 per ounce. Indian sentiment remains positive due to RBI’s significant purchases.”
Gold is expected to trade in a range of $2,600 per ounce (₹75,000 per 10 grams) to $2,700 per ounce (₹77,600 per 10 grams) in the short term, with potential for an upside once market uncertainties ease.
Darshan Chauhan, Director at SkyGold, also weighed in on the current market scenario.
“Gold prices are consolidating after reaching life highs last month. We expect prices to remain within the current range due to high marriage demand in India,” he told CNBC-TV18.com.
