Gold Rate in India Close To Falling Below Rs 1.2 Lakh, Silver Stays Stable; Will Trend Reverse? 8 Nov Outlook

Gold Rate in India: Months after hitting record highs and subsequently plunging by nearly Rs 7,700 per 10 grams, gold prices are now oscillating within the Rs 1.20-Rs 1.25 lakh range. Continuing this range-bound movement, the yellow metal failed to sustain Thursday's gains and slipped lower on Friday. As the weekend begins, investors are closely watching gold price trends on Saturday, November 8, for fresh cues on direction.

Despite some price correction, gold rate in India has witnessed around 50% surge since the beginning of the year. The precious metal saw a sharp surge in its value amid heightened geopolitical uncertainty and trade tensons. Back in India, the recent price correction has brought an opportunity for retail jewellery buyers to make purchases.

Gold Rate in India

The price of 24 karat gold in India decreased around Rs 550 per 10 gram to Rs 12,202 per 10 grams. Whereas the rate of 22 karat gold in India fell by Rs 500 to Rs 1,11,850 per 10 grams. Likewise, the price of 18 karat gold in India declined around Rs 410 per 10 gram to Rs 91,520. Gold prices have declined significantly over the past fifteen days. Experts hint, that the prices may see some more consolidation but will continue to rise in the long-term.

Silver Rate in India

The price of silver in India remained stable on Friday at Rs 152.5 per gram and at Rs 1,52,500 per kilogram. Silver rate in India had witnessed a sharp price surge in September and October due to supply side crunch, however, the prices corrected in the second half of October.

Gold, Silver MCX

Gold futures with December expiry closed marginally higher at Rs 120613.00 per 10 gram on Friday on MCX. Whereas, the silver futures with December expiry concluded at Rs 147069 per kilogram on Friday. The international gold rate on Friday closed marginally higher at $4,000 per ounce, as per Trading Economics. Gold may see a heightened demand in the near-term because of concerns around extended US shutdown, geopolitical tensions and other factors.

"Gold hovered near $4,000 through the week, weighed by a stronger dollar and fading confidence in further U.S. rate cuts after Chair Powell signaled a hawkish tone even as the Fed delivered a second 25 bps cut this year. Market expectations for another cut in December slipped from around 90% to near 60%, pressuring bullion, while the dollar index held close to 100 and USDINR climbed toward 89. A prolonged U.S. government shutdown, now the longest on record, has throttled key data releases, forcing investors and policymakers to depend on private surveys; ISM manufacturing and services PMIs both slipped below 50, indicating contraction," explained Manav Modi, Motilal Oswal Financial Analyst.

Gold, Silver Price Outlook

The prices of gold may remain stable on Saturday, but in the long-run will continue to showcase an upward momentum. However, experts believe that gold and silver will continue to hover in a broader range in the coming weeks. The yellow metal is likely to trade in a broader range within Rs 1,16,000 and Rs 1,24,000 in November.

"However, the 116,000 level aligns with the upper bound of the channel, making it a potential accumulation zone, provided pricesmanage to close on a positive note for a week above this level," noted Motilal Oswal Financial Services while maintaining a bullish stance on the metal.