Gold and silver prices edged higher on Thursday (November 6), buoyed by renewed safe-haven demand as global equities slipped and investors weighed stronger-than-expected U.S. employment data alongside evolving interest rate expectations.
In India, 24-karat gold was priced at Rs 12,147 per gram, while 22-karat gold stood at Rs 11,134 per gram. Silver was quoted at Rs 150.40 per gram, or Rs 1.50 lakh per kilogram. In global trade, spot gold rose 1.3% to $3,983.89 per ounce.
According to Tai Wong, an independent metals trader, “Gold and silver are modestly higher despite a stronger-than-expected ADP private payrolls report. This should give comfort to bulls who were surprised that metals fell along with risky assets yesterday.”
The latest ADP data showed that U.S. private employers added 42,000 jobs in October—beating expectations of 28,000. While a robust labour market reduces the need for further rate cuts by the U.S. Federal Reserve, broader market caution has lent support to safe-haven assets.
“Some safe-haven demand has surfaced as global stock markets remain a bit shaky amid ideas U.S. stocks are overvalued and that there is an AI stock bubble,” said Jim Wyckoff, senior analyst at Kitco Metals.
The Fed recently trimmed policy rates, and while Chair Jerome Powell hinted it might be the last cut this year, traders still see a 63% chance of another reduction in December—down from 90% a week earlier. Lower rates typically enhance the appeal of gold and silver by reducing the opportunity cost of holding them.
Dollar’s role in gold pricing
The dollar plays a vital role in determining the price of gold, as the metal is typically benchmarked against the American currency when the bullion market opens. A stronger dollar makes gold more expensive for holders of other currencies, which can decrease demand and thus lower prices. Conversely, a weaker dollar can make gold cheaper and more attractive, potentially driving prices higher.
According to a recent World Gold Council report, central banks purchased 220 tonnes of gold in Q3 2025—an increase of 28% from the previous quarter. The Reserve Bank of India (RBI) alone added nearly 600 kilos between April and September, raising its total reserves to about 880 tonnes.
Gold prices are expected to consolidate between $3,900 (Rs 1,17,500) and $4,060 (Rs 1,22,500) over the next few days, according to a report from Augmont Bullion on November 3, which advised investors to “buy on dips and sell on rallies.”
Gold’s resurgence
A report by CareEdge Ratings highlighted gold’s resurgence as a principal reserve asset, reflecting deep shifts in the global financial system. The growing demand for gold underscores rising fiscal vulnerabilities, persistent inflation, and geopolitical uncertainties shaping the global economy.
“As traditional anchors such as the U.S. dollar and the euro face structural risks, gold has re-emerged as a politically neutral and inflation-resistant store of value,” the report noted. Central banks, particularly in the BRICS bloc, are diversifying their reserves away from dollar-denominated assets to strengthen monetary autonomy and build resilience against external shocks.
Gold prices have rallied sharply over the past year, averaging $3,665 per ounce in September 2025—nearly double their value two years ago—and touching a record high of $4,000 in October. From January 2024 to mid-2025, gold gained nearly 64%, bolstered by central bank purchases and strong investor sentiment.
Time to invest in gold?
Fundamentally, gold has a negative standard deviation — when most asset classes decline, gold tends to rise. However, the current market cycle has shown an unusual trend where equities, commodities, and gold have all advanced simultaneously. Many diversified investors are now allocating 15–20% of their portfolios to gold as a hedge against uncertainty and inflation.
Investment in gold today is itself diversified across instruments. The buying and selling price of physical gold is determined by its market rate, while the Reserve Bank of India’s Sovereign Gold Bonds (SGBs) offer 2.5% annual interest with an eight-year lock-in period. Each SGB unit represents one gram of gold with 999 purity, providing an alternative for investors seeking returns without the costs associated with physical storage.
In India, gold imports touched a ten-month high in September 2025 — marking the third consecutive monthly increase and surpassing the five-year average. The surge, driven by strong festive season demand, came despite persistently high prices.
As noted by CareEdge Ratings, gold’s renewed appeal extends beyond its role as a commodity. It is increasingly being viewed as a strategic reserve asset — a stabilising force in portfolios and a cornerstone of resilience amid the shifting balance of global economic power.
(With Reuters inputs)