Daijiworld Media Network - Mumbai

Mumbai, Nov 6: Gold prices rebounded sharply on Thursday from a one-week low, driven by a softer dollar, heightened safe-haven buying, and fresh demand ahead of the peak wedding season.

The rally came despite stronger-than-expected US jobs data, which has tempered hopes for another Federal Reserve rate cut this year.

During intra-day trading, 10 grams of 24-carat gold was priced at Rs 1,20,100, according to the India Bullion and Jewellers Association (IBJA). On the MCX, December gold futures gained 0.74% to Rs 1,21,410 per 10 grams, while December silver contracts rose 1.03% to Rs 1,48,884 per kg as of 2:10 pm.

The dollar index dipped around 0.20% but remained above the 100-mark, near a four-month high. Meanwhile, US 10-year Treasury yields stayed just below their highest level in nearly a month, exerting some pressure on bullion prices. ADP data revealed that US private employment rose by 42,000 in October, exceeding market expectations.

Analysts noted that gold is holding its crucial support at $3,870 per ounce, while silver is maintaining support near $46.50 per troy ounce. Precious metals are expected to remain volatile this week due to fluctuations in the dollar index, global markets, and ahead of the US non-farm payroll report.

“Gold and silver rebounded from one-week lows, bolstered by safe-haven demand amid political uncertainty in the US. The ruling party’s loss in the New York City mayoral elections has raised concerns ahead of mid-term polls,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.

Strong physical demand from China and Australia also supported the rally. Analysts identified gold’s support range between Rs 1,19,280–1,19,870 and resistance at Rs 1,21,090–1,21,600.