Gold Records Strongest Weekly Gain Since August As Crude Oil Prices Plunge Over 12%

Gold recorded its strongest weekly gain since August, rising nearly 4.5 per cent, while crude oil prices suffered their steepest weekly decline since April 2020 amid changing global economic expectations and shifting investor sentiment.

Concerns surrounding the global artificial intelligence sector triggered a shift in investments from equity markets towards commodities. Changing expectations about the US Federal Reserve’s monetary policy also influenced trading in precious metals.

On Friday, December gold futures on the Multi Commodity Exchange (MCX) declined 1.20 per cent to Rs 1,42,364, while December silver futures advanced 0.10 per cent to Rs 1,84,977 per kg.

According to the India Bullion and Jewellers Association (IBJA), 24-carat gold was priced at Rs 1,41,452 per 10 grams on Friday, compared with Rs 1,40,054 at the previous week’s close.

WTI crude fell from above $104–$105 to around $90 per barrel, while Brent slipped to $97–$98. Both benchmarks lost over 12 per cent this week.

Gold also fell from Friday’s highs as stronger US jobs data boosted the dollar and Treasury yields. Payrolls rose by 165,000 against expectations of 65,000, while unemployment dropped to 4.1 per cent, raising the likelihood of a December rate hike to 81 per cent.

The US 10-year Treasury yield neared 4.88 per cent, putting further pressure on gold.

Lower prices encouraged gold buying in India ahead of Diwali, but higher interest rates could limit gains.

MCX gold faces resistance at Rs 1,43,000–Rs 1,43,700 and support at Rs 1,40,000–Rs 1,41,000. Silver resistance stands at Rs 1,86,000–Rs 1,88,000, with support at Rs 1,78,000–Rs 1,80,000.

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