Gold prices experienced a slight decline of 0.05%, closing at Rs 123913 as investors took profits following recent increases. This movement was influenced by ongoing concerns regarding the extended U.S. government shutdown and heightened expectations for a Federal Reserve rate cut in December. While the U.S. Senate advanced towards resolving the unprecedented shutdown, apprehension regarding its economic ramifications maintained a cautious sentiment.

Reports indicates that markets currently assign a probability exceeding 60% for an additional rate cut in December. In terms of demand, China’s gold consumption from January to September 2025 experienced a year-on-year decline of 7.95%, totaling 682.73 metric tons, whereas domestic production increased by 1.39% to reach 271.78 tons. Physical demand in India remained subdued as price volatility led dealers to increase discounts to as much as $14 per ounce, compared to $12 the prior week. The demand from China has also diminished due to a modification in the tax exemption policy for gold retailers, which has decreased the benefits to 6% until the end of 2027.

Premiums in other Asian hubs have remained relatively modest, with Singapore and Hong Kong reporting quotes ranging from $1.5 to $3.5 per ounce. The World Gold Council reports that global gold demand increased by 3% year-on-year to reach 1,313 tons in the third quarter, marking the highest quarterly level on record. This growth was bolstered by a 17% rise in bar and coin investment and a remarkable 134% increase in ETF inflows, which compensated for a decline in jewellery demand.

Central banks maintained consistent buying activity, increasing by 10% year-on-year to a total of 219.9 tons. Gold is experiencing slight selling pressure, accompanied by a 2.77% increase in open interest, now at 12,906. Support levels are identified at Rs 122940 and Rs 121965, whereas resistance is anticipated at Rs 125365 and Rs 126815 levels.