Gold prices increased by 0.3% to Rs 130,462, influenced by a series of weak US economic indicators that bolstered expectations for a forthcoming Federal Reserve rate cut. The World Gold Council’s latest data further substantiates the trend, indicating that global central banks have intensified their acquisitions, contributing a net 53 tonnes in October—the most robust buying activity observed since November 2024. As of the current year, total acquisitions have reached 254 tonnes, with Poland and Brazil at the forefront, while China has maintained its purchasing momentum for 12 consecutive months. In September, the US PCE index experienced a 0.3% increase, aligning with expectations. Concurrently, personal spending and income saw modest growth, indicating a cooling yet resilient economic landscape.

Physical demand, however, exhibited indications of pressure stemming from heightened prices. Indian gold demand experienced a decline as local prices approached record highs, leading retailers to provide discounts of up to $22 per ounce. China experienced fluctuating demand as bullion oscillated between discounts and minor premiums, influenced by market volatility and newly implemented VAT regulations that increased expenses.

Other Asian centers, including Singapore and Hong Kong, exhibited varied premium levels, whereas Japan maintained a relatively stable position. In the third quarter, global gold demand increased by 3% to reach a historic 1,313 tonnes. This growth was primarily fueled by a 17% rise in bar and coin purchases, alongside a significant 134% surge in ETF inflows, which counterbalanced the decline in jewellery demand.

Gold is currently experiencing new buying activity, as indicated by a 0.19% increase in open interest, reaching 13,050. Immediate support is positioned at Rs 129,660, followed by Rs 128,860, whereas resistance is identified at Rs 131,400. Should prices surpass this level, they may subsequently approach Rs 132,340.