Gold prices experienced an upward movement, concluding with a gain of 0.83% at Rs 137,885 after reaching a new all-time high, bolstered by anticipations of a more accommodative US monetary policy and increased geopolitical tensions. Market confidence has bolstered regarding the Federal Reserve’s potential implementation of two 25-basis-point rate cuts in the upcoming year, as inflation shows signs of moderation and labor market conditions exhibit a softening trend.

Focus is now directed towards the second estimate of US third-quarter GDP for further insights into policy direction. Safe-haven demand was bolstered by rising tensions between the US and Venezuela, as well as renewed disruptions associated with the Russia–Ukraine conflict. Robust central bank purchases and consistent ETF inflows persist in supporting the rally, with gold now appreciating nearly 70% year-to-date, signifying its most significant annual performance since 1979.

The People’s Bank of China has maintained its buying streak for thirteen consecutive months, as global central banks recorded a net addition of 53 tonnes in October. In November, physically backed gold ETFs experienced their sixth consecutive month of inflows, resulting in total assets under management reaching a historic US$530 billion. Nevertheless, high prices have suppressed physical demand in Asia, leading to significantly increased discounts in India and China, even during the peak wedding season.

From a technical perspective, the market is experiencing new buying activity, as evidenced by a 1.42% increase in open interest to 15,097, coinciding with a price rise of Rs 1,141. Gold currently finds itself with immediate support at Rs 136,855; a breach of this level would reveal further downside potential at Rs 135,830. Resistance is established at Rs 138,700, and a sustained movement above this level may pave the way toward Rs 139,520.