Gold declined by 0.38% to Rs 129,962 as traders adopted a cautious stance in anticipation of the Federal Reserve’s upcoming policy meeting, where a 25 basis points rate cut is nearly fully anticipated, influenced by mixed US employment figures and stable core inflation rates. Markets anticipate additional easing in 2025, as investors look forward to new Federal Reserve projections for 2026 and the years that follow. The forthcoming JOLTS report is under scrutiny for its implications on the labor market. On the global front, central banks maintained their robust accumulation trajectory.

The People’s Bank of China has increased its reserves for the 13th consecutive month, raising holdings to 74.12 million ounces. Meanwhile, global central banks collectively added 53 tonnes in October, with Poland and Brazil at the forefront of this increase. Year-to-date purchases currently total 254 tonnes, while Russia has continued to be a minor seller. Physical demand in Asia remained subdued as elevated prices led buyers to adopt a wait-and-see approach. India experienced an increase in discounts to $22 per ounce, whereas Chinese bullion fluctuated between a $10 discount and a $8 premium.

Singapore reported premiums reaching $2.5, while Hong Kong exhibited a range from a $0.5 discount to a $2 premium. Global gold demand increased by 3% year-on-year, reaching a record 1,313 tonnes in the third quarter. This growth was propelled by robust purchases of bars and coins, alongside a significant 134% surge in ETF inflows, which counterbalanced the decline in jewellery demand.

Long liquidation exerted downward pressure on prices, resulting in a 0.34% decrease in open interest. Support is positioned at Rs 129435, beneath which Rs 128910 could be examined. Resistance is positioned at Rs 130625, and a breakout above this threshold may propel prices toward Rs 131290.