Gold continued its upward trajectory, closing 0.11% higher at Rs 130107 as market participants increasingly anticipated a possible rate cut by the Federal Reserve. The attention of investors is now directed towards the Federal Reserve’s revised economic forecasts and the remarks from Chair Jerome Powell, which are anticipated to provide a more definitive understanding of the policy trajectory leading into 2026.

In anticipation of the decision, the JOLTS job openings report is crucial for assessing labor market dynamics. Gold has experienced a remarkable increase of nearly 60% this year, bolstered by ongoing purchases from central banks, robust inflows into exchange-traded funds, and heightened demand as a safe-haven asset. China’s central bank has increased its gold reserves for the 13th consecutive month, reaching 74.12 million troy ounces. In October, global central banks collectively added 53 tonnes, with Poland and Brazil leading the way.

Demand for ETFs continued to be robust, as global gold ETFs recorded their sixth consecutive month of inflows, amounting to $5.2 billion in November and elevating assets under management to $530 billion, the highest level ever achieved. In physical markets, Indian gold prices approached record highs, which has led to a reduction in retail demand and an increase in dealer discounts to $22 per ounce. China experienced a combination of premiums and discounts amidst market volatility, whereas Singapore and Hong Kong operated within narrow premium ranges.

There was a notable increase in buying interest, as reflected by a 3.06% rise in open interest to 13,404, coinciding with a price increase of Rs 145. Immediate support is established at Rs 129320, beneath which prices may decline toward Rs 128530. Resistance is identified at Rs 130680, and a breakout above this level could potentially lead to a test of Rs 131250.