Gold prices have surged 5% overnight to two-week highs, with spot gold prices climbing above $4,100 per ounce and hitting their highest since October 22. According to The Financial Express, the precious metal has maintained its biggest rally since August, with bullion climbing about 3.4% on Wednesday - its biggest daily gain since August 19. In the Indian markets, MCX Gold prices have surged 1.5% to above ₹1.45 lakh per 10 gm. The sharp spike comes as dollar and Treasury yields ease after the decisive win by Democrats in the US midterm elections. International gold ended 2.9% higher at $4,042.2 per ounce and domestic prices at ₹141,055 per 10 grams in India in the previous session. Ponmudi R, CEO of Enrich Money, pointed out that "Bullion gained as much as 3.6%, marking its strongest advance since mid-August, while easing crude oil prices helped temper inflation concerns."
Oil prices fell for a fourth consecutive session on Thursday, with Brent crude futures down 97 cents or 1.03% to $93.65 per barrel and US West Texas Intermediate crude futures declining $1.14 or 1.29% to $86.98. As reported by Business Standard, oil prices fell for a fourth day on Thursday on expectations the losses US President Donald Trump's Republican Party suffered in Congressional elections this week may reduce the risk of further escalation of the US-Israeli war on Iran. Both benchmarks tumbled by more than 8% in the previous session to settle at their lowest since August 31. A weakened Trump, facing a Democratic Congress able to constrain his military options, has greater incentive to seek a deal, two sources close to Gulf government circles said on Wednesday. A full-scale assault on Iran now looks less likely, they said. Crude shipments through the Strait of Hormuz - the key waterway for most Gulf oil supplies - have recovered to close to pre-war levels, according to analysts, though at a higher cost.
"Markets are assessing the impact of the midterm elections to Donald Trump's next steps with the Iran war, pricing in more likelihood for the war to end," said June Goh, senior oil analyst at Sparta Commodities. "However, there will be more volatility ahead as the path to full diplomacy to end the war is still wrought with many unknowns while the global strategic reserves have drawn very thin." According to Business Standard, JPMorgan estimates the market returned to a surplus of 1.1 million barrels per day in September, widening to 1.4 million bpd in October, nearly matching last year's average of 1.3 million bpd. The resumption of Gulf supply has pushed the global oil market back into surplus after months of disruption caused by the war. However, Mukesh Sahdev, CEO of energy consultancy XAnalysts, noted that commercial oil inventories in major consuming countries are near their lowest in 15 years and said Iran could emerge from the US election outcome with greater resolve.
The dollar edged lower on Thursday in the aftermath of an overwhelming victory by Democrats in US midterm elections that cleared a major source of uncertainty and fuelled a rally in global equities. According to Moneycontrol, the dollar index, which measures the greenback against a basket of currencies, fell 0.06% to 101.41, after a 0.36% decline in the prior session. The euro was up 0.12% at $1.1241. The yield on benchmark 10-year US Treasuries was down 6 basis points overnight and by a further basis point in early Tokyo trade to 4.87%. The recovery follows the midterm election results in the United States that favoured the Democrats over the Republicans led by President Donald Trump. US gold futures for December delivery rose 2.2% to $4,026.90, while spot silver jumped over 4.4%, showing significant movement from the previous session.
Gold prices rose for the third consecutive session on Friday, November 6, moving back above the $4,100 per ounce mark with spot gold trading 0.4% or $15 higher at $4,103.49. As reported by ET Now, for the week ending November 6, spot gold had advanced 5.9% so far, with silver prices also mirroring the positive trend, trading above $52 per ounce and gaining 5.8% on a weekly basis. In India, gold and silver prices were not trading at the time of writing this report, with gold and silver futures on the Multi-Commodity Exchange (MCX) settled at ₹1,43,970 per 10g and ₹1,86,901 per kg, respectively. Trading activity in the domestic market is expected to remain high ahead of Dhanteras, with buying gold on this auspicious occasion believed to invite prosperity, wealth and good fortune into the household. The Dollar Index (DXY) was down 0.3% during the week, making gold cheaper for holders of other currencies, while bond yields have also provided support with the 10-year US bond yield declining approximately 2% this week.
On the physical demand front, there are signs of improvement after a sluggish market in the first nine months of the year. According to Business Standard, Yogesh Singhal, chairman of the All Bullion and Jewellers Association, said he has seen a sharp recovery in gold jewellery demand over the past month. "Diwali demand has been good, and if this momentum carries into the upcoming wedding season, jewellers could make up for their earlier losses," said Singhal. "Although gold prices are now higher than a year ago, the overall value of jewellery purchases has remained largely unchanged. As a result, even though sales have fallen in volume (weight) terms, they have held steady in value terms, which points to a recovery in consumer demand," he added. This represents a significant shift from previous years when India was one of the world's largest gold consumers, with India's gold demand expected to fall to a six-year low in 2026 according to the World Gold Council.
