Why gold is extending gains?

Gold prices continued their upward trajectory on Thursday, November 13, as both domestic and international markets reflected strong investor demand amid expectations of US interest rate cuts and ongoing geopolitical uncertainties.

In India, 10 grams of gold rose ₹2,290 to ₹1.27 lakh. Globally, spot gold increased 0.4% to $4,214.52 per ounce, while US December futures inched up 0.1% to $4,218.20, reaching the highest level since October 21. Analysts attributed the rally to anticipated monetary easing by the US Federal Reserve and a weaker dollar.

“Gold’s gains are supported by a weaker dollar, expected Fed rate cuts, and continued central bank purchases,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities. He noted that while short-term consolidation may occur, prices could surpass $4,300 per ounce by year-end if real yields remain low.

The rally follows the US government reopening after its longest shutdown, enabling the release of key economic data ahead of the Fed’s December meeting. With lower interest rates favoring non-yielding assets like gold, prices have surged nearly 60% this year.

Rahul Kalantri of Mehta Equities highlighted support at $4,100–$4,140 and resistance at $4,240–$4,265. Emkay Wealth projected upside targets of $4,368–$4,600, citing dollar weakness, geopolitical risks, and strong institutional buying as key drivers.