Gold prices, during the week from 9 to 14 November, witnessed a significant downward trend in both international and Indian markets. The week was characterised by persistent selling pressure, weakening investor sentiment and a considerable correction in gold prices. Overall, the market remained bearish, with only a marginal recovery towards the end of the trading week.
At the beginning of the week, on 9 November, international gold was trading at approximately US$4,114.50 per troy ounce (around 31.10 gram). However, prices declined to US$4,030.20 on 10 November, followed by a further reduction to US$4,000.50 on 11 November. The downward movement intensified on 12 November, when gold fell to approximately US$3,885.30 per ounce. On 13 November, prices showed a marginal improvement to US$ 3,886.30, indicating some stabilisation after the sharp decline. As 14 November fell on a Saturday, there was no regular COMEX trading session.
Over the reporting period, international gold prices declined by approximately 5.55%, falling from US$4,114.50 to US$3,886.30 per troy ounce. This substantial correction reflected continued weakness in the international bullion market.
India trend
The Indian domestic gold market followed a similar downward trajectory. On 9 November, the indicative price of 24-karat gold stood at approximately Rs 1,44,600 per 10 grams, while 22-karat gold was priced at around Rs 1,32,550 per 10 grams. Prices gradually declined throughout the week, reaching approximately Rs 1,37,350 for 24-karat gold and Rs 1,25,900 for 22-karat gold by 13 November. These levels remained unchanged in the indicative reference rates on 14 November.
Consequently, 24-karat gold registered a decline of approximately Rs 7,250 per 10 grams, representing a reduction of around 5.01%. Similarly, 22-karat gold declined by approximately Rs 6,650 per 10 grams, equivalent to a decrease of around 5.02%. The domestic price movement was broadly consistent with the international market trend, although local currency fluctuations and domestic market conditions also influenced Indian gold rates.
The decline in gold prices during the week can be associated with several important market considerations. Expectations regarding US monetary policy, movements in the US dollar, changing interest-rate expectations and investor profit booking are among the factors that influence international gold prices. A stronger dollar and expectations of relatively higher interest rates can reduce the attractiveness of gold as an investment. In addition, changes in global economic sentiment and investment demand can contribute to short-term price volatility.
"Gold and silver endured a punishing week as hotter-than-expected US inflation data, a stronger dollar and renewed expectations of a December rate hike weighed heavily on prices. Gold slid to its lowest level of the year, while silver retreated towards $50 an ounce. Both metals staged a modest recovery on Friday, but the rebound was insufficient to offset steep weekly losses," said Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealthtech firm.
The most significant selling pressure was observed between 10 and 12 November, when international gold prices recorded consecutive declines. The movement on 12 November was particularly notable, as gold experienced one of its sharpest daily corrections of the week. Although prices stabilised slightly on 13 November, the recovery was insufficient to reverse the overall downward trend. The absence of regular international trading on 14 November also meant that no fresh COMEX closing price was available for that date.
Looking ahead, the short-term outlook for gold remains cautious, say a couple of market experts from a top Chennai retail chain. The market may continue to experience volatility depending on developments in the US dollar, inflation indicators, Federal Reserve policy expectations and international investment demand.
Although a marginal stabilisation was observed towards the end of the reporting period, a clear recovery in the gold market had not yet been established. Investors and market participants should therefore remain cautious and closely monitor international economic developments and currency movements before making investment decisions.
"If selling pressure persists, gold prices may face further downward pressure. Alternatively, renewed investment demand or a weakening US dollar could support a recovery in prices," said the market experts seeking not be identified.