Gold and silver prices rise on global slowdown concerns

Gold and silver prices gained on Monday, November 10, tracking firm global cues as weak US economic data and expectations of a Federal Reserve rate cut in December boosted safe-haven demand.

In India, 24-karat gold traded at ₹12,322 per gram, 22-karat at ₹11,295, and 18-karat at ₹9,242. Silver prices stood at ₹152.40 per gram or ₹1.52 lakh per kilogram.

Internationally, spot gold rose 1.4% to $4,053.40 per ounce, while silver gained 1.8% to $49.18 per ounce. Analysts said the metals are drawing strength from renewed concerns over a global slowdown and speculation that the US central bank may ease policy sooner than expected.

“Gold is catching a solid bid from traders, with the metal rising on anticipation that a rate cut could still arrive next month, even though the Fed has been downplaying its likelihood,” said Tim Waterer, Chief Market Analyst at KCM Trade.

Safe-haven demand strengthens

A string of weak US indicators—including job losses in government and retail sectors, a spike in layoffs, and the ongoing 40-day government shutdown—has raised concerns over growth prospects. As a result, the dollar softened and investors moved towards bullion.

The world’s largest gold-backed ETF, SPDR Gold Trust, reported a rise in holdings to 1,042.06 metric tons, reflecting investor appetite for the metal.

Technical outlook

According to Rahul Kalantri, Vice President – Commodities, Mehta Equities, gold and silver markets ended the week volatile but resilient.

“Gold has support at $3,955–3,920 an ounce and resistance at $4,040–4,065 an ounce. Silver has support at $47.80–47.45 an ounce and resistance at $48.55–48.85 an ounce,” he said.

In rupee terms, gold faces resistance near ₹1.22 lakh per 10 grams and silver near ₹1.49 lakh per kg.

Analysts expect near-term consolidation

Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions and President of the India Bullion and Jewellers Association, said bullion prices are likely to consolidate before the next leg higher.

“Gold and silver are establishing a base after the recent volatility. With US layoffs rising sharply and the government shutdown extending, safe-haven buying is likely to stay supported,” he said.