On Thursday, November 6, a rise in gold and silver prices was seen. Demand for safe haven assets picked up again amid a fall in global equity markets and investors’ hopes for better-than-expected US employment data and a change in interest rates. In Mumbai, 24-carat gold was priced at ₹1,21,470 per 10 gram, while 22-carat gold was priced at ₹1,11,340 per 10 gram. These rates do not include GST and making charges. Silver was available at ₹1,50,400 per kg.
Gold was trading 0.12% higher at ₹1,20,666 per 10 gram for December 5 contracts on the MCX futures market, while silver was trading 0.04% higher at ₹1,47,378 per kg. “There was some volatility in global stock markets amid overvaluation of US equities and AI stock bubble,” said Jim Wyckoff, senior analyst at Kitco Metals. “The volatility has led to increased demand for some safe investment assets.”
The Federal Reserve recently cut policy rates, and although Chairman Jerome Powell has hinted that this could be the last cut this year, traders still see a 63% chance of another cut in December, up from 90% a week ago. Low rates typically increase the appeal of gold and silver by reducing the opportunity cost of holding them.
“Gold and silver prices have bounced from one-week lows on safe-haven buying amid rising political uncertainty in the US,” said Rahul Kalantri, Vice President (Commodities), Mehta Equities. The defeat of the US President’s party in the New York City mayoral election has heightened concerns ahead of the upcoming midterm elections. Strong physical demand from China and Australia also supported the precious metals. However, the dollar index remained above 100. level to a three-month high, limiting further gains. Additionally, stronger-than-expected ADP non-farm employment data, which rose to 42,000 versus estimates of 32,000, limited gains.”
Sabyasachi Ray, executive director of GJEPC, said jewelery exports to the UAE are on the rise. Exports of plain jewelery to UAE increased by 72%. Jewelery exports to Saudi Arabia and the Middle East increased. Diamond exports to the UAE also increased by 65%. The Free Trade Agreement (FTA) between India and the United Arab Emirates also benefited. Diamond jewelery is being made in the UAE and exported to the US. He further said that the US market remains stable. The Chinese market is also gradually improving. GST cut is impacting domestic demand. The next quarter is expected to be very good.
