DBT Bureau
Pune, 11 Nov 2025
Gold on 10th Nov settled sharply higher by 2.40% at Rs 1,23,970, supported by growing expectations of a Federal Reserve rate cut in December and a series of weak U.S. economic indicators that heightened concerns over a global slowdown. The U.S. economy lost jobs in October, particularly in the government and retail sectors, while a rise in corporate layoffs linked to cost-cutting and AI adoption added to worries. U.S. consumer sentiment also fell to its lowest in over three years amid the prolonged 40-day government shutdown, further boosting gold’s safe-haven appeal. The CME FedWatch Tool now indicates a 67% probability of a rate cut in December. ETF flows also reflected renewed investor interest, with SPDR Gold Trust holdings rising 0.16% to 1,042.06 tonnes. Globally, gold demand climbed 3% year-on-year in Q3 2025 to 1,313 tonnes, driven by a 17% surge in bar and coin purchases and a 134% jump in ETF inflows, according to the World Gold Council. Central bank purchases rose 10% to 219.9 tonnes, while mine output and recycling increased by 2% and 6%, respectively. However, jewellery demand fell 23% as high prices discouraged retail buying. In India and China, physical demand remained subdued due to volatile prices and policy changes, leading to discounts in domestic markets. Technically, the market is under short covering, with open interest down 2.7% to 12,558 while prices surged 2,903. Support is at Rs 1,22,445 and Rs 1,20,915, while resistance is seen at Rs 1,24,830 and Rs 1,25,685.
Market Analysis.
- Gold trading range for the day is Rs 120915- Rs 125685.
- Gold prices rose buoyed by expectations of another Fed interest rate cut in December.
- Support also seen amid a slew of weak economic data that raised global slowdown worries.
- U.S. consumer sentiment weakened to the lowest level in nearly 3-1/2 years in early November.
Source: Kedia Stocks & Commodities Research Pvt. Ltd.
