Gold prices in India have witnessed one of the strongest weeks of November, rising by a whopping Rs 23,000 in 24K of 10 grams from November 18th to 21st. The yellow metal in India tracked the surge in international prices. Major support for gold arises from the Russia-Ukraine war which is on a continuous boiling point. However, the bull’s party in gold is expected to be capped owing to Trump’s debt-funded tax cuts which are likely to be announced once he returns to office in about 2 months. Here is the near-term outlook for gold!

Gold Prices In India:

On November 21, Thursday, the price of 24K in 10 grams of gold surged by Rs 330 to Rs 77,950, while 100 grams of gold is up by Rs 3,300 to Rs 7,79,500. Further, the 22K gold price is up by Rs 300 to Rs 71,450 in 10 grams and surged by Rs 3,000 to Rs 7,14,500 in 100 grams on November 21. Also, 10 grams and 100 grams of gold in 18k climbed by Rs 240 and Rs 2,400 on Thursday to Rs 58,460 and Rs 5,84,600.

Notably, gold prices have been on the rise since the start of this week’s trading session. On November 18, 24K of 100 grams of gold was up by Rs 6,600, followed by a Rs 7,600 surge on November 19, an upside of Rs 5,500 on November 20, and at the latest the rise was about Rs 3,300 on November 21. In these four days, the price of 100 grams of gold in 24K skyrocketed by Rs 23,000.

Silver Prices In India:

1Kg silver is at Rs 92,000 on November 21, while 100 grams and 10 grams of silver is at Rs 9,200 and Rs 920. Further, 8 grams of silver is Rs 736 and the cheapest price is Rs 92 in 1 gram.

MCX Gold, Silver Prices:

After market hours of November 21, MCX gold futures with December expiry, rose by Rs 493 or 0.65% to end at Rs 76,527 per 10 grams, which was a couple of rupees from its intraday high of Rs 76,728 per 10 grams.

However, MCX silver price with December expiry, dropped by Rs 549 or 0.61% to close at Rs 89,540 per 1kg, which was near Rs 90,927 per 1 kg.

Spot Gold:

On Thursday, spot gold touched a $2,673.55 an ounce high, while US gold futures with December expiry hit an intraday high of $2,676.15 an ounce.

Gold Prices Near Term Outlook:

As per Sandip Raichura, CEO – of Retail Broking and Distribution, and Director – of PL Broking and Distribution, gold prices rose for the fourth day and a one-week high when gold recovered from near our support levels of around 2500 USD. The sudden spike of conflict in Russia and Ukraine is most likely behind this move. Ukraine fired a series of British Storm Shadow cruise missiles into Russia on Wednesday, marking the latest use of Western weapons on Russian targets, just a day after U.S. missiles were used. The United States also vetoed a U.N. Security Council resolution calling for a ceasefire in Gaza, adding more uncertainty in that geography.

Giving outlook, Raichura said, gold, which is considered a hedge against inflation, also will benefit from expectations that US President-elect Donald Trump’s proposed tariffs could spur inflationary. However, worries that Trump’s debt-funded tax cuts would lead to larger budget deficits remain supportive of elevated US Treasury bond yields which implies that Gold gains may be capped. From a technical perspective, a 50% retracement level of around the $2,660 area may act as a resistance, above which Gold prices could sharply accelerate again. A break of 2550 USD levels may lead to weakness as the $2,537 area is the near-term swing low.

Further, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities said, gold prices surged higher as geopolitical tensions reignited safe-haven demand, with renewed concerns over nuclear risks in the Russia-Ukraine conflict. Reports of escalating tensions and global unease drove gold prices up by $18 on Comex, reaching $2,670, and by ₹550 higher at ₹76600 on MCX. The uncertainty surrounding the situation continues to support a bullish bias for gold.

Technically, Trivedi added, gold faces significant resistance on Comex near $2,675-2,690, with key support at $2,600-2,610. In MCX, ₹75,000-₹75,200 serves as strong support, while resistance levels are pegged at ₹77,100-₹77,300. Elevated volatility is expected in the short term due to geopolitical developments.