Gold prices trade higher on MCX as crude oil cools and safe-haven demand holds

Gold prices are staging a recovery following a sharp drop in October, driven by lower crude oil prices and ongoing safe-haven demand. MCX gold futures for December delivery are quoted at ₹1,43,129 per 10 grams, marking an increase of ₹577 or 0.4%. The contract opened at ₹1,43,562 on Monday and reached an intraday high of ₹1,44,400 in the previous session.

Market Factors

Lower energy costs have eased worries about inflation, giving central banks more flexibility on interest rates. Crude oil prices fell after US President Donald Trump downplayed the chance of fresh military strikes against Iran. At the same time, geopolitical tensions surrounding US and Iran relations continue to support gold's safe-haven appeal. However, gains remain limited due to a stronger US dollar and rising bond yields. Expectations of another Federal Reserve interest rate hike in December, backed by strong US employment data, are also weighing on bullion.

Expert Outlook

Brokerage firm Religare Broking notes that gold may stay volatile with a cautious bias this week. The firm recommends a buy strategy in December gold futures between ₹1,43,850 and ₹1,43,900, with a stop loss of ₹1,41,400 and an upside target of ₹1,48,000, provided key support levels hold. Ponmudi R, CEO of Enrich Money, points out that MCX gold is holding above the ₹1,43,000 to ₹1,43,700 support band, while a sustained move above ₹1,46,000 is needed to extend the recovery.

Context

Gold is widely seen as a safe investment during times of geopolitical conflict and economic uncertainty. Its price is heavily influenced by global factors like US inflation data, currency strength, and central bank interest rate decisions. Domestic prices in India also react to international market trends alongside currency movements.