Gold Prices In India Is Rs 600 Away From Rs 81,000 In 24K/10 Grams; Yellow Metal Prices Outlook For Nov 4-8

Gold Prices In India: Yellow metal in India marked yet another record high week, fuelled by huge demand in Diwali festival, however, the prices corrected over the weekend, pulling back from their peaks. Currently, 24K of 10 grams is just Rs 600 away from hitting new all-time high of Rs 81,000 mark. In the coming week, gold prices are expected to range between Rs 77,000 to Rs 81,000 at MCX, while silver is seen to hit new high of up to Rs 1,05,000.

Gold Prices In India: 24K of 10 grams price is currently at Rs 80,400, just Rs 600 away from touching new high to Rs 81,000 mark. Meanwhile, 22K and 18K gold prices were at Rs 73,700 and Rs 60,300 in 10 grams respectively.

Silver Prices In India: 1Kg of silver is available at Rs 97,000 in India. In cities like Chennai, Hyderabad, and Kerala, the price of 1Kg silver is already at Rs 1,06,000.

MCX Gold, Silver Prices: Last week, on Friday, during the Muhurat trading of Diwali, MCX gold futures with December expiry is at Rs 78,778 per 10 grams after touching the high of Rs 78,950 per 10 grams.

While MCX silver futures were at Rs 95,460 per 1kg, which is also of December expiry, this commodity had touched an intraday high of Rs 95,699 per 1kg on November 1.

According to a Reuters report, gold demand in India jumped this week amid festival purchases, although volumes were lower than usual due to record-high prices. Also, Indian dealers earlier this week charged a premium of up to $1 an ounce over official domestic prices on Dhanteras, inclusive of 6% import and 3% sales levies, but offered a discount later in the week of up to $5, compared with last week's $4 discount.

Gold, Silver Prices Weekly Outlook:

According to SMC Global Securities, safe-haven demand, driven by uncertainties surrounding the U.S. elections and Japan and the ongoing conflict in the Middle East, as well as anticipation of more cues on interest rates, has fuelled bullion prices on record highs. Gold marked another record high, reaching $2801.7 on COMEX and 79775 on MCX. Silver followed a similar path to gold, reaching $34.7.

Further, the brokerage pointed out that the dollar index had initially rallied from 100 to above 104.6 over the past four weeks, corrected slightly due to weaker-than-expected economic data. Uncertainty was also high ahead of U.S. Election Day on Nov. 5, with polls showing a tight race between Donald Trump and Kamala Harris.

Also, SMC's note highlighted that Japan added to the political uncertainty after a coalition led by the ruling Liberal Democratic Party lost its parliamentary majority in a recent election. Tensions in the Middle East also remained in play, given that Iran still vowed retaliation for Israel's recent strike. U.S. private payroll growth surged in October, the ADP National Employment Report showed, dispelling concerns about potential disruptions caused by hurricanes and strikes.

Furthermore, data showed that the U.S. economy grew at an annualised rate of 2.8% in the third quarter, slightly lower than the 3% expected by economists, it added.

As per the World Gold Council global gold demand reached an all-time high of 1,313 tonnes during the last three-month period, marking a 5% increase year on year for any third quarter. However, India's gold demand is projected to fall to a four-year low in 2024, due to high prices.

Looking ahead, SMC's note added that this week, "Gold may trade in the range of 77700-81500 levels, and Silver also trades in the range of 94000-100000 levels, with
sideways to bullish bias."