CHENNAI: Gold prices traded in a narrow range during the week ended November 7, reflecting a phase of consolidation after recent highs. Domestic prices in India moved between Rs 1,21,000 and Rs 1,22,000 per 10 grams for 24-carat gold, showing mild volatility but no clear directional bias.
On Monday (Nov 3), gold opened firm at around Rs 1,21,450 per 10 grams in Delhi, supported by steady global cues. Prices edged slightly higher midweek, touching nearly Rs 1,21,910 per 10 grams on Wednesday (Nov 5) as traders covered short positions and international spot gold found support near the $4,000-per-ounce level. However, by Thursday (Nov 6) and Friday (Nov 7), prices eased marginally to around Rs 1,22,020 per 10 grams, down about Rs 55 per gram from the previous day, indicating profit-taking ahead of the weekend.
Across major Indian cities, gold prices reflected similar trends through the week. In Mumbai and Delhi, 24-carat gold hovered around Rs 1.21 lakh per 10 grams for most of the week, while Chennai and Bengaluru saw slightly higher rates due to regional demand differences. Retail jewellers noted softer footfalls following the festive season, prompting minor discounts of Rs 200–Rs 300 per 10 grams to spur buying interest. The 22-carat segment also moved in tandem, ranging between Rs 1,11,000 and Rs 1,12,000 per 10 grams.
Despite subdued demand, market sentiment remained broadly stable, supported by expectations of a rebound in wedding-related purchases later in the month. Bullion traders said that while festive demand had cooled, buyers were likely to return ahead of the upcoming wedding season, keeping prices from slipping below key support levels.
The overall movement remained subdued, with buyers and investors adopting a cautious stance after October’s strong rally. Dealers in India reported weaker post-festival demand, prompting wider discounts on bullion to attract customers. According to a Reuters report, jewellery retailers saw a notable slowdown in footfall and orders once the festive season ended.
Globally, gold held steady below $4,000 per ounce amid mixed signals from the US Federal Reserve on future interest-rate cuts. In China, a policy move to curb full VAT offset for gold retailers weighed on jewellery demand, contributing to a softer tone in international markets.
Despite the mild decline, analysts view the current phase as a healthy consolidation rather than a reversal. Support for domestic prices lies around Rs 1.20–1.21 lakh per 10 grams, while resistance is seen near Rs 1.23 lakh. A break below the support range could trigger a correction toward Rs 1.17 lakh, while any weakening in the US dollar or fresh safe-haven buying could push prices higher again.
Outlook
Market experts expect gold to trade sideways in the near term as traders assess global monetary cues and consumer demand trends. Investors are advised to adopt a “buy-on-dips” approach, given the likelihood of renewed interest during the upcoming wedding season and geopolitical uncertainties supporting safe-haven assets.