DBT Bureau
Pune, 7 Nov 2025
Gold prices edged slightly higher by 0.08% to settle at 1,20,613, supported by a weaker U.S. labour outlook that bolstered expectations of further Federal Reserve easing. The prolonged U.S. government shutdown has complicated economic assessments, shifting focus to private-sector data. ADP private payrolls rose by 42,000 in October, beating forecasts, while the ISM Services PMI hit an eight-month high. Despite this strength, inflation remaining above target has limited the scope for additional rate cuts, aligning with Fed Chair Powell’s recent hawkish remarks. Still, some policymakers signaled that rates may gradually move lower over time. On the physical front, gold demand patterns were mixed. In India, the metal was sold at a discount of up to $12 per ounce—the first in seven weeks—amid slowing demand after festive buying. Conversely, premiums improved in China, Singapore, Hong Kong, and Japan, reflecting revived trading activity following a dip in global rates. According to the World Gold Council, global gold demand rose 3% year-on-year in Q3 to 1,313 tons, the highest on record, driven by strong investment inflows and robust central bank purchases. Technically, the market is witnessing short covering with open interest falling by 0.54% to 13,489 while prices gained 91. Immediate support is seen at 1,19,980, with further downside potential to 1,19,340, while resistance is expected near 1,21,405 and a breakout above this level could push prices toward 1,22,190.
Market Analysis:
- Gold trading range for the day is 119340-122190.
- Gold settled flat as a fragile US labour picture raised the odds of Federal Reserve easing.
- The US government entered its longest-ever shutdown, complicating the assessment of the economic outlook.
- US private payrolls rose by 42,000 in October, surpassing forecasts of 25,000, while the ISM Services PMI hit an eight-month high.
