Gold gains from 1-week low as dollar declines amid peak wedding season demand

Mumbai, Nov 6 (IANS) Gold rose significantly from its one-week low on Thursday amid dollar decline, increased safe-haven buying and fresh demand ahead of the peak wedding season.

The rise came even as headwinds from stronger-than-expected US jobs data dampened expectations for another Federal Reserve rate cut this year.

The price of 10 grams of 24-carat gold was Rs 1,20,100 during intra-day trading, according to data published by the India Bullion and Jewellers Association (IBJA).

MCX Gold December futures rose by 0.74 per cent to Rs 1,21,410 per 10 grams at 2.10 pm. MCX Silver December contracts rose 1.03 per cent to Rs 1,48,884 per kg during the same period.

The dollar index fell approximately 0.20 per cent but stayed above the 100-mark, close to a four-month high. Meanwhile, US 10-year yields remained just below their highest level in nearly a month, weighing down on the bullion.

ADP's employment report indicated that US private employment rose by 42,000 jobs in October, surpassing estimates, according to multiple media reports.

Market analysts said that gold is maintaining its critical support level of $3,870, while silver holds support at $46.50 per troy ounce on a closing basis.

They expect precious metal prices to remain volatile this week, amid volatility in the dollar index, global financial markets, and ahead of the US non-farm employment data.

"Gold and silver prices rebounded from a one-week low, supported by safe-haven buying amid rising political uncertainty in the United States. The US President’s party losing the New York City mayoral elections has heightened concerns ahead of the upcoming mid-term polls," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

Strong physical demand from China and Australia also provided support to precious metals, he added. Analysts placed gold's support at Rs 1,19,870-1,19,280 zones while resistance at Rs 1,21,090-1,21,600 zone.

--IANS

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