Gold prices experienced a modest increase, closing up by 0.15% at Rs 1,38,097, buoyed by anticipations of additional monetary easing from the US Federal Reserve and heightened geopolitical tensions. US economic growth demonstrated resilience in the third quarter, with GDP expanding at an accelerated rate, while labor market indicators persisted in showing a gradual moderation. In light of the divergent perspectives among Federal Reserve officials, market participants continue to anticipate two rate reductions in 2026, driven by a deceleration in inflation and a relaxation in employment conditions.

Geopolitical tensions surrounding Venezuela, especially the United States’ measures to blockade oil tankers, have bolstered safe-haven demand throughout commodity markets. Gold has now gained approximately 70% this year, setting the stage for its most robust annual performance since 1979, supported by ongoing central bank acquisitions and steady ETF inflows. Demand in the physical market has continued to be lackluster despite the persistently high price levels.

In India, discounts expanded to exceed a one-month peak, with dealers providing up to $37 per ounce, whereas in China, discounts reached $64 per ounce, marking the most significant decline in over five years. In contrast, premiums exhibited modest levels across Singapore, Hong Kong, and Japan. In the realm of investments, the People’s Bank of China has maintained its purchasing momentum for a thirteenth consecutive month, whereas global gold ETFs have experienced inflows for the sixth month in a row, resulting in total holdings reaching an unprecedented 3,932 tonnes.

From a technical perspective, the market is experiencing short covering, evidenced by a 3.62% decline in open interest to 14,550, coinciding with a price increase of Rs 212. Support is identified at Rs 1,37,365; a breach of this level could lead to a test of Rs 1,36,635. Conversely, resistance is established at Rs 1,38,750, with potential for an upward target approaching Rs 1,39,405.