Precious Metals Climb as Crude Oil Falls
The global commodities market experienced a dramatic divergence this week, with gold posting its most robust weekly advance since August, rising nearly 4.5%. In stark contrast, crude oil benchmarks collapsed by more than 12%, hitting their lowest weekly levels since April 2020. West Texas Intermediate crude sank to around $90 per barrel, while Brent crude traded in the $97–98 range.
Institutional and retail investors alike have been redirecting funds from equity markets into safe-haven assets. This strategic pivot stems from growing apprehensions about the sustainability of the tech sector, alongside evolving expectations for US monetary policy. Although rates were maintained in October, subsequent remarks from policymakers advocating for additional hikes to tame inflation have reinforced a hawkish outlook.
In the domestic Indian market, price action remained choppy. Friday's session saw local futures decline ₹1,731 to settle at ₹1,42,364 per 10 grams. According to industry data, 24-carat gold finished the week at ₹1,41,452 per 10 grams, up roughly 1% from the prior week's closing price of ₹1,40,054. Silver also saw a minor uptick, advancing 0.10% to ₹1,84,977 per kilogram.
The week's latter half was heavily influenced by a surprise surge in US labor market strength. October's non-farm employment data revealed a 165,000 increase, vastly outpacing expectations of 65,000, and pushed the unemployment rate down to 4.1%. This robustness elevated December rate hike probabilities to 81%, triggering a rally in the dollar and a jump in the 10-year Treasury yield to 4.88%. These developments applied downward pressure on metals, though the international price correction successfully stimulated physical demand ahead of Diwali. Analysts warn that prolonged inflation anxieties and expensive credit conditions could limit future upside. From a technical standpoint, futures must clear resistance between ₹1,43,000 and ₹1,43,700, with support anchored at ₹1,41,000–₹1,40,000. Silver's key technical zones show resistance at ₹1,86,000–₹1,88,000 and support at ₹1,78,000–₹1,80,000.