Gold yesterday settled marginally higher by 0.15% at Rs 1,21,409 as investors anticipated crucial U.S. private payroll data this week to assess the probability of an additional Federal Reserve rate cut before the end of the year. The metal also garnered support from international geopolitical and economic developments. A recent framework agreement between the U.S. and China has alleviated trade tensions, as Beijing has consented to ease export restrictions on rare earths, while Washington has deferred the implementation of new tariffs.

Investor sentiment, however, remained cautious as the prolonged U.S. government shutdown entered its 33rd day, raising concerns over delayed economic data and potential broader economic disruption. On the domestic front, Indian gold dealers noted discounts of up to $12 per ounce for the first time in seven weeks, contrasting with last week’s $25 premium, as demand weakened following the festival season. Meanwhile, other Asian markets exhibited enhanced activity, with China trading at a premium of as much as $4 an ounce, while Singapore and Hong Kong recorded premiums of up to $3 and $1.6, respectively.

As per reports, global gold demand experienced a year-on-year increase of 3% in the third quarter of 2025, reaching a total of 1,313 tonnes—the highest quarterly figure ever recorded. This growth was primarily fueled by a 17% rise in demand for bars and coins, alongside a remarkable 134% increase in ETF inflows, which counterbalanced a decline in jewelry demand.

Gold is experiencing renewed buying interest, evidenced by a 2.97% increase in open interest to 13,406, alongside a price rise of Rs 177. Support levels are identified at Rs 1,21,005 and Rs 1,20,595, whereas resistance levels are positioned at Rs 1,21,985 and Rs 1,22,555. A breach of these levels may catalyze additional bullish momentum.