Gold concluded the session with a 0.89% increase, reaching Rs 130,652, buoyed by rising anticipations regarding a potential interest rate cut by the US Federal Reserve in the upcoming week. A succession of dovish remarks from Federal Reserve officials, alongside lackluster US economic data following the extended government shutdown, has bolstered market expectations, with traders now estimating an 87% likelihood of a 25 basis points rate reduction. Market participants are currently looking forward to the release of US private payrolls and PCE data, which are anticipated to provide additional insights into the Federal Reserve’s policy trajectory.

Gold has achieved increases in almost every month this year, positioning it for its most impressive annual performance since 1979, fueled by robust central-bank purchases and ongoing ETF inflows. Nonetheless, elevated prices have adversely affected physical demand in significant Asian markets. In India, despite the ongoing wedding season, dealers provided a discount of up to $18 per ounce, which is marginally narrower than the previous week.

As reported by the World Gold Council, global gold demand in the third quarter increased by 3% year-on-year, reaching 1,313 tonnes, marking the highest quarterly level on record. Investment demand experienced a significant increase, as bar and coin demand rose by 17% and ETF inflows surged by 134%, counterbalancing a notable 23% drop in jewellery fabrication. Central bank purchases rose by 10% to 219.9 tonnes. Supply reached an all-time high, bolstered by increased recycling efforts and a 2% uptick in mine production.

From a technical perspective, new buying activity was noted, accompanied by an increase in open interest of 10.51%, reaching a total of 13,406. Support is established at Rs 129,930, beneath which Rs 129,200 could be examined, while resistance is identified at Rs 131,360, with a possible extension towards Rs 132,060.