Gold prices decreased by 0.29%, concluding at Rs 130,078 as traders realized profits and took a prudent approach in anticipation of the upcoming FOMC meeting next week. Markets are anticipating significant U.S. data releases, notably the postponed September PCE report, which could provide more definitive insights into the Federal Reserve’s policy trajectory. The November ADP report revealed an unforeseen decline of 32,000 jobs, contrasting with the anticipated increase of 10,000, signifying the most pronounced deceleration in hiring since 2023. This further reinforced dovish expectations, as rate futures are now indicating nearly a 90% probability of a 25 basis points cut next week.

Geopolitical tensions provided some modest support, as discussions between the U.S. and Russia regarding the Ukraine conflict ended without any advancements. Central banks maintained their robust purchasing momentum, acquiring a net 53 tonnes of gold in October— marking the most significant monthly increase since November 2024. Poland and Brazil spearheaded the purchases, whereas China continued its buying momentum for the twelfth consecutive month, accumulating a total of 2,304 tonnes.

Russia emerged as the sole net seller, reducing its holdings by 3 tonnes. Nevertheless, elevated global prices have dampened physical demand in major Asian centers. Indian dealers provided discounts reaching $18 per ounce, even during the wedding season, whereas China experienced a combination of premiums and discounts following the elimination of the VAT exemption on gold purchases. Singapore and Hong Kong were exchanged at levels close to parity, with minor premiums observed.

From a technical perspective, there is a clear indication of fresh selling pressure, as open interest has risen by 0.11% to 13,025, coinciding with a price decline of Rs 384. Support stands at Rs 129,360, and a breach would reveal Rs 128,645. Resistance stands at Rs 130,795, beyond which Rs 131,515 could be approached.