Gold and silver prices experienced a significant rebound on November 13, recovering from a sharp sell-off in the previous session. The precious metals are being buoyed by a confluence of factors, including persistent inflation concerns, rising crude oil prices, and escalating geopolitical tensions in the Middle East.
On the Multi Commodity Exchange (MCX), gold futures climbed 0.87% to reach ₹1,37,404 per 10 grams. Silver futures also saw gains, rising 0.41% to ₹1,79,460 per kg. In international markets, spot gold traded at $3,923 per ounce, up 0.99%, while silver advanced 0.70% to $50 per ounce.
Inflation and Geopolitical Unrest Fuel Gold's Appeal
According to Amit Gupta, Senior Research Head at Kedia Advisory, the primary driver behind this gold price recovery is the market's anxiety over inflation, exacerbated by surging crude oil prices. Tensions in the Middle East, particularly recent attacks on Saudi energy infrastructure and disruptions to shipping through the Strait of Hormuz, are further amplifying concerns over global energy supplies and their inflationary impact.
Geopolitical remarks also play a role, with US President Donald Trump's comments suggesting Washington does not require a deal with Iran, dampening hopes for an swift resolution to regional conflicts.
US Monetary Policy and Dollar Strength Add Caution
Despite the recovery, investor sentiment remains cautious due to uncertainty surrounding the US Federal Reserve's next monetary policy move. Markets are currently pricing in an 85% probability of a 25-basis-point interest rate hike in December. Additionally, the dollar index has strengthened to 103, putting pressure on bullion and other metals, as a stronger dollar makes dollar-denominated commodities more expensive for international buyers.
Key Support and Resistance Levels for Gold and Silver
Amit Gupta outlined key levels for traders:
- International Gold: Support is identified at $3,880. A sustained move above this could push prices towards $3,940–$3,960.
- MCX Gold: Support is placed at ₹1,36,000, with upside targets ranging from ₹1,39,500 to ₹1,41,000.
- International Silver: Support stands at $49.20, with potential upside targets of $51.20–$52.50.
- MCX Silver: Support is at ₹1,75,000, with targets between ₹1,82,000–₹1,86,000.
The precious metals market continues to navigate a complex environment of economic uncertainty and geopolitical instability, reinforcing their role as safe-haven assets.