Daijiworld Media Network - New Delhi

New Delhi, Nov 7: Gold recorded its strongest weekly gain since August, surging nearly 4.5 per cent, while crude oil witnessed its steepest weekly decline since April 2020 amid expectations of policy shifts following the US midterm elections.

Concerns over the global artificial intelligence sector triggered significant movement of funds from equity markets into commodities, while changing expectations surrounding the US Federal Reserve's monetary policy also supported sentiment towards precious metals.

On Friday, December gold futures on the Multi Commodity Exchange (MCX) declined 1.20 per cent to Rs 1,42,364, while December silver futures edged up 0.10 per cent to Rs 1,84,977 per kg.

Meanwhile, West Texas Intermediate (WTI) crude retreated from levels above $104-$105 per barrel to around $90, while Brent crude eased to the $97-$98 range. Both benchmarks recorded weekly losses of more than 12 per cent.

Despite the weekly gains of nearly 4.5 per cent, gold prices retreated from their intraday highs after stronger-than-expected US employment data strengthened the dollar and pushed up Treasury yields.

According to data released by the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold stood at Rs 1,41,452 on Friday, compared with Rs 1,40,054 at the previous week's close.

Although the US Federal Reserve kept interest rates unchanged at its October meeting, subsequent comments from two officials favouring further gradual rate increases to contain persistent inflation strengthened expectations of additional monetary tightening.

The US employment report for October, released on Friday, reinforced this outlook. Non-farm payrolls increased by 1.65 lakh against market expectations of 65,000, while the unemployment rate declined to 4.1 per cent from 4.2 per cent.

The stronger labour-market figures pushed the implied probability of a rate hike in December to around 81 per cent.

Following the data release, US Treasury yields moved higher, with the 10-year yield approaching 4.88 per cent. The dollar also strengthened, putting fresh downward pressure on precious metal prices towards the end of the week.

Analysts said the decline in international gold prices had attracted physical buying in India ahead of Diwali. However, expectations of further interest rate increases by the US Federal Reserve and higher borrowing costs continued to restrict the sustainability of the bullion market's recovery.

For MCX gold, immediate resistance is placed in the Rs 1,43,000-Rs 1,43,700 range, while the Rs 1,41,000-Rs 1,40,000 zone is expected to provide immediate support.

In the case of MCX silver, resistance is seen at Rs 1,86,000-Rs 1,88,000, while the immediate support range stands at Rs 1,78,000-Rs 1,80,000, analysts said.