In India, 24-karat gold was priced around ₹12,628 per gram, while 22-karat gold traded at ₹11,575 per gram. For 18-karat gold, prices stood near ₹9,471 per gram.
Local demand has inched up as the ongoing wedding season boosts jewellery purchases and gold continues to serve as a preferred inflation hedge.
Silver prices also moved higher to ₹160 per gram or ₹1.60 lakh per kilogram, with support coming from both festive buying and industrial demand.
According to Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA), investor sentiment has turned more optimistic amid expectations of monetary easing and stable inflation trends.
“Gold prices have seen a small but steady rise as market confidence improves. The wedding season is driving local consumption, while investors view gold as a stable alternative in an uncertain global environment,” Kamboj said.
Globally, spot gold climbed 0.7% to $4,142.83 per ounce, its highest since October 24, while US gold futures for December delivery rose to $4,148.50. Silver firmed 0.5% to $50.80 per ounce.
The US Senate’s passage of a deal to end the federal government shutdown improved investor confidence, easing uncertainty that had stalled key data releases such as non-farm payrolls.
With the shutdown ending, markets expect clearer signals on the US economic outlook and the Fed’s next steps.
Traders are now pricing in a 64% probability of a 25-basis-point rate cut in December, according to CME’s FedWatch tool. Fed Governor Stephen Miran has suggested a larger 50-basis-point cut could be appropriate, given falling inflation and a gradual rise in unemployment.
Analysts say these developments make gold attractive as a non-yielding, defensive asset.
Analysts see continued support from policy and demand
Rahul Kalantri, Vice President – Commodities at Mehta Equities, said that bullion opened the week on a strong note as lower dollar levels and safe-haven demand encouraged buying.
“Gold has support at $4,065–$4,020 an ounce and resistance around $4,135–$4,155 an ounce. In rupee terms, gold support lies near ₹1.22 lakh per 10 grams with resistance at ₹1.25 lakh per 10 grams,” Kalantri said.
Longer term, investment banks such as J P Morgan remain constructive, projecting gold prices to remain well supported due to continued central bank purchases and diversification away from the dollar.
The bank expects gold to potentially test $5,000 per ounce in 2026 if easing trends persist.
–With Reuters inputs