CHENNAI: After a week-long correction, gold prices began to recover early this week and extended their gains on Wednesday (November 5), supported by sustained safe-haven demand and a softer US dollar. Investors continued to favor bullion amid persistent global economic and geopolitical uncertainties, keeping the metal close to record levels.
On the international market, spot gold traded around $3,970 per ounce, up nearly 1 percent from the previous session. The movement came as US Treasury yields and the dollar index remained rangebound, offering little resistance to the yellow metal’s advance.
In the domestic market, gold on the Multi Commodity Exchange (MCX) hovered near Rs119,900 per 10 grams, reflecting both the firm global trend and mild rupee weakness against the US dollar. Silver also moved higher, tracking gains in bullion.
Bullion market analysts say the rally was driven by a combination of safe-haven flows, sustained central bank and ETF buying, and investors hedging against potential volatility in global markets. A subdued dollar and stable US yields further supported sentiment.
Technically, gold faces immediate resistance around the $4,000 per ounce mark, with support seen near $3,850. A breakout above $4,000 could trigger another round of momentum buying, while any rebound in US yields may cap the upside.
Overall, the trend remains constructive, with market participants watching upcoming US inflation and jobs data for cues on the Federal Reserve’s rate outlook, which will likely determine the next major move in gold prices.