Gold settled lower by -0.5% at Rs 153,046 yesterday, as investors assessed new U.S. economic data and its implications for Federal Reserve policy, in the wake of President Trump’s nomination of Kevin Warsh as the next Fed chair. In light of the postponement of significant labour-market reports this week, attention turned to the ADP data, revealing private payroll growth that fell short of expectations. Conversely, a robust ISM services PMI indicated ongoing resilience within the sector.

The market experienced a notable increase exceeding 6% in the prior session, marking its most significant daily rise since 2008, as opportunistic buyers entered following earlier declines. Safe-haven demand persisted in the context of geopolitical tensions, particularly following the downing of an Iranian drone near a U.S. aircraft carrier, despite scheduled talks between the U.S. and Iran on Friday. Gold premiums in India have surged to a decade-high, now reaching as much as $121 per ounce, propelled by robust investment demand in anticipation of a probable duty increase.

In China, premiums increased to $32 per ounce from last week’s $8, indicating a rise in investment and jewellery demand. Central banks maintained their consistent purchasing activity, as evidenced by the People’s Bank of China acquiring 30,000 ounces last month, thereby prolonging its accumulation streak to 14 months. Demand from the official sector continues to provide crucial support for prices in the face of uncertainty surrounding the dollar.

From a technical perspective, the market is experiencing long liquidation, as evidenced by a decrease in open interest of 2.14%, bringing it to 8,228. Support is identified at Rs 149,445, with an additional test at Rs 145,840 if this level is breached, while resistance is positioned at Rs 158,705, and a breakout could drive prices towards Rs 164,360.