Gold prices concluded the trading session with an increase of 0.38%, reaching Rs 134,130, bolstered by rising anticipations of additional monetary easing from the U.S. and ongoing demand from the official sector. Recent indicators of a slowdown in the U.S. labor market have bolstered market expectations that the Federal Reserve may implement two rate reductions in 2026. For the week ending December 6, jobless claims increased beyond expectations, reaching their highest point in more than two months. This came after the Federal Reserve’s third 25 basis points rate reduction this year and a more dovish policy stance.

Chair Jerome Powell signaled that additional rate hikes are largely unlikely, leading traders to anticipate a more pronounced easing than what is currently indicated in the Fed’s projections. Furthermore, the Federal Reserve’s declaration to acquire approximately USD 40 billion in short-term Treasury bills is anticipated to limit short-term yields, thereby providing additional support to precious metals. Fundamental support persists robustly as central banks maintain their status as net purchasers of gold.

China has augmented its gold reserves for the thirteenth consecutive month, reaching 74.12 million troy ounces. Meanwhile, global central banks recorded a net addition of 53 tonnes in October, marking the most substantial monthly increase since November 2024. Gold ETFs have experienced their sixth consecutive month of inflows, resulting in assets under management hitting a record USD 530 billion.

On the technical front, the market experienced new buying interest, as open interest increased by 0.48% to 13,711, accompanied by a price gain of Rs 508. Gold currently finds itself with immediate support at Rs 133,305; a breach of this level may lead to a decline in prices towards Rs 132,485. On the upside, resistance is identified at Rs 135,220, and a sustained movement above this threshold may pave the way toward Rs 136,315.