Daijiworld Media Network - New Delhi

New Delhi, Nov 29: The price of 24-carat gold (10 grams) climbed sharply by Rs 1,324 over the week, fuelled by strong safe-haven demand and growing expectations of a US Federal Reserve rate cut.

According to data from the India Bullion and Jewellers Association (IBJA), 24-carat gold closed the week at Rs 1,26,666, up from Rs 1,25,342 recorded on Monday.

Market sentiment strengthened after the CME FedWatch Tool indicated that the likelihood of the Federal Reserve cutting rates by 350–375 basis points at its December meeting increased to 86.9%, compared with 71% just a week earlier.

Analysts noted that gold has once again tested the resistance zone between $4,215 and $4,240, and would require a strong trigger to break decisively above the upper range. A sustained upward move could push prices toward the previous record of $4,400 (Rs 1,31,500), while any weakness may drag them down to $4,100 (Rs 1,23,000).

Gold prices, however, softened slightly on Friday after the resolution of the US government shutdown, which eased market fears of major economic disruption.

In technical terms, gold is expected to find support at Rs 1,25,750–1,24,980 per 10 grams and face resistance at Rs 1,27,750–1,28,400.

Silver, on the other hand, has support at Rs 1,60,950–1,59,400 per kg and resistance at Rs 1,63,850–1,64,900.

Analysts anticipate that the mild weakness in bullion may persist in the near future unless fresh safe-haven demand emerges or the Federal Reserve signals a clear shift in policy.

Earlier this week, Bank of America projected that gold could potentially rise to $5,000, driven by factors such as high government debt, sticky inflation, lower interest rates, and unconventional US economic measures. The bank also pointed out that institutional participation remains limited despite rising prices.

Meanwhile, slowing demand from China, tight supply conditions in key mined metals, and low global inventories remain crucial factors to watch in the coming months.