Mumbai, Nov 1 The price of 24-carat gold (10 grams) dipped by Rs 1,649 on a weekly basis till Saturday, due to fading expectations of Federal Reserve rate cuts and hopes of US trade deals with India and China.
The price of 10 grams of 24-carat gold dipped Rs 4 on a daily basis on Saturday to Rs 1,20,770, according to data published by the India Bullion and Jewellers Association (IBJA).
The price move at the weekend was also due to weakness in international bullion prices amid a strong dollar.
Bullion has gained 3.9 per cent so far this month, with US gold futures for December delivery trading flat at $4,016.70 per ounce.
Sentiment turned cautious after the US Federal Reserve cut its benchmark interest rate by 25 basis points to the 3.75 per cent–4 per cent range, but hinted that the rate cut might be the final one in 2025, which dampened hopes of further near-term easing.
Markets are now pricing in a 74.8 per cent probability of a 25-basis-point cut from the Fed in December compared with a 91.1 per cent chance a week ago, according to the CME Group’s FedWatch tool.
Meanwhile, US President Donald Trump said he had agreed with Chinese President Xi Jinping to trim tariffs on China in exchange for Beijing cracking down on the illicit fentanyl trade, resuming US soybean purchases and keeping rare earths exports flowing.
Analysts however hinted that some uncertainty remains over the durability of the deal. The yellow metal is up around 50 per cent this year, supported by strong central bank demand.
“Elevated risk sentiment continues to offer support to bullion, with key levels seen near Rs 1,18,000 as support and Rs 1,24,000 as resistance. Markets now await clarity on trade balance discussions between the US-China and US-India, which are likely to set the short-term direction,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Until then, gold is expected to remain volatile within the mentioned range, he added.
(Auto generated news from IANS Feed. This has not been edited by enewstime desk)
