Daijiworld Media Network - Mumbai
Mumbai, Nov 3: After months of stellar gains, spot gold prices slipped below the $4,000 per ounce mark on Monday, falling 2.7% from last week to $3,984.43 an ounce, according to market data.
In domestic trade, the price of 10 grams of 24-carat gold stood at Rs 1,21,113, as per figures released by the India Bullion and Jewellers Association (IBJA). The pullback comes after an extended rally driven by global economic uncertainty and central bank buying.
Analysts attributed the latest correction to easing trade tensions between the US and China and a surge in the US dollar index, which climbed to a three-month high. The strengthening dollar typically makes gold more expensive for buyers using other currencies, reducing demand.
Adding to the softening trend, Beijing’s decision to end a long-standing tax rebate for select retailers is expected to dampen Chinese gold consumption — a critical factor in the global bullion market.
Despite the decline, gold remains over 50% higher year-to-date, supported by robust central bank purchases and safe-haven demand amid persistent geopolitical and economic risks.
Silver prices have also cooled sharply after touching festive highs of around Rs 2 lac per kilo during the Dhanteras season. On Monday, one kilogram of silver was priced at Rs 1,49,660, according to IBJA data.
Market experts view the recent correction as a short-term consolidation phase, with potential for another upward move in the near future.
“Rising US bond yields above 4% have reduced investor appetite for safe-haven assets. Fed Chair Jerome Powell’s comments ruling out guaranteed rate cuts in December also weighed on sentiment. However, sustained central bank buying and ongoing global uncertainties should continue to support bullion prices,” said Rahul Kalantri, Vice President (Commodities) at Mehta Equities Ltd.
In technical terms, analysts suggest gold has support levels between Rs 1,20,870 and Rs 1,20,480, while resistance lies between Rs 1,21,890 and Rs 1,22,300. Silver, meanwhile, finds support at Rs 1,47,450–Rs 1,46,750 and resistance at Rs 1,49,340–Rs 1,50,280.
With the dollar remaining firm and bond yields elevated, traders expect bullion prices to remain range-bound in the short term, though long-term fundamentals continue to favour gold’s safe-haven appeal.