In addition, the festive season demand in India has amplified gold’s appeal, supporting strong price movements.
Gold set for best month in seven
Gold surged to a record high of $2,790.15 per ounce early Thursday (October 31) and has increased 6% so far this month.
Spot gold remained steady at $2,786.89 per ounce as of 0254 GMT, while US gold futures saw a slight dip of 0.1%, at $2,797.80 per ounce.
Investors await US core personal consumption expenditures (PCE) data, with September’s index expected to show a 0.3% increase, which could further influence gold’s trend.
“Gold’s rise is largely tied to safe-haven trades, serving as a hedge against potential deficit spending in the U.S especially if a Trump win seems likely,” noted Kyle Rodda, Financial Market Analyst at Capital.com.
India’s festive demand lifts gold higher
In India, 24-carat gold (10 grams) is priced at ₹81,160, and 22-carat gold stands at ₹74,400 today.
Gold prices have risen by 1.83% over the past week and reflect a traditional Diwali buying surge.
Jateen Trivedi, VP Research Analyst at LKP Securities, explained that “Gold remains buoyant on festive demand in India, with added momentum from market bets on a potential Trump victory in the US election.”
Trivedi further shared that traders eye ₹78,200 per 10 grams as a support level, with a Diwali target of ₹80,000 per 10 grams.
As US voters prepare for the November 5 presidential election, gold prices are responding to the market’s anticipation of increased fiscal spending. Investors will closely watch PCE inflation data, which could signal the US Federal Reserve’s stance on interest rates.
The market expects the Fed may soon reduce borrowing costs, creating a favorable environment for gold.
Matt Simpson, Senior Analyst at City Index, commented, “Gold’s trend looks poised to continue upward, particularly if inflation data meets or falls below expectations.”
Silver and other metals track gains
While gold remains in the spotlight, silver has also experienced high demand.
Currently, silver is priced at ₹97,850 per kilogram in India, marking a high point in the metal’s rally.
Globally, silver fell slightly by 0.3% to $33.68 per ounce, yet its overall performance has been strong for October.
Meanwhile, platinum and palladium were steady, showing resilience amidst global demand.
–With agencies inputs