Gold and Silver Rebound as Dollar Softens, Spot Demand Improves
Gold and silver prices moved higher in early trade on Monday (November 3), rebounding after recent losses as the U.S. dollar weakened and domestic spot demand strengthened ahead of the festive season.
At 9:10 am, MCX Gold December futures were trading 0.39% higher at ₹1,21,708 per 10 grams, while MCX Silver December contracts gained 0.69% to ₹1,49,307 per kg. Analysts attribute the rise to short covering and improved sentiment following a week of profit booking.
The rally comes as the U.S. Federal Reserve recently cut interest rates by 25 basis points, bringing the benchmark rate to 3.75%–4.00%, marking its second cut of the year. However, Fed Chair Jerome Powell’s hawkish stance, suggesting no further rate cuts in December, has tempered market optimism. Despite that, a softer dollar—down 0.10% in the last session—has helped gold prices regain momentum.
Domestic bullion traders reported renewed buying interest after a sharp correction. Over the past two weeks, gold fell by nearly ₹9,400 (over 7%) and silver slumped by about ₹22,000 (13%) per kg. With prices stabilizing, retail and institutional buyers appear to be returning.
Technical experts are closely watching support and resistance zones for the next leg of movement.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research:
- Gold support: ₹1,20,600 and ₹1,19,800
- Resistance: ₹1,22,000 and ₹1,22,700
- Silver support: ₹1,47,000 and ₹1,45,500
- Resistance: ₹1,50,000 and ₹1,51,500
He recommends buying gold on dips near ₹1,20,400 with a target of ₹1,22,000 and silver near ₹1,47,000 for targets up to ₹1,51,500.
Jigar Trivedi, Senior Analyst at Reliance Securities, believes MCX gold will remain range-bound between ₹1,21,000–₹1,21,800 for the December expiry, while Rahul Kalantri of Mehta Equities pegs short-term gold resistance at ₹1,22,300.
The recent surge in prices, coupled with easing inflation data and firm spot demand, could support bullion’s short-term upside. However, traders caution against aggressive buying given Powell’s hawkish tone and potential global headwinds.
As India heads into its peak festive and wedding season, experts expect demand to stay healthy. If the dollar continues to ease and inflation expectations soften, gold could reclaim the ₹1,22,500 level in the near term, while silver may test ₹1,50,500 per kg again.
For now, all eyes are on global cues, domestic jewelry demand, and Fed policy signals — as gold’s glitter returns just in time for the festive rush.