Gold and silver prices rebounded on Wednesday, November 4, ahead of Dhanteras, with both precious metals gaining amid weakness in the US dollar and changes in global market sentiment following the US midterm elections.
On the Multi Commodity Exchange (MCX), December gold futures were trading at ₹1.42 lakh per 10 grams, up 2.36%, while December silver futures rose 4.06% to ₹1.86 lakh per kg, according to the latest price snapshot.
The recovery comes after considerable volatility in precious metal prices during 2026.
Gold touched a record high of approximately $5,595 per ounce in January before undergoing a sharp correction. Movements in the US dollar, bond yields, interest-rate expectations and geopolitical developments have influenced bullion prices during the year.
US dollar, interest rates among key factors
The weakness in the US dollar following early results from the November 3 US midterm elections has supported gold and silver prices, according to Gaurav Garg, Head of Research at Lemonn.
Garg said the possibility of Democrats gaining control of Congress had weighed on US equities and the dollar, while Treasury yields had declined. Markets are also tracking developments involving Iran and Ukraine, crude oil prices and upcoming US employment data.
Monetary policy remains another important factor.
In its November 3 Gold Special Report, Religare Broking said the US Federal Reserve’s interest-rate decisions, movements in the dollar and bond yields, and geopolitical developments would remain important determinants of gold prices.
The US Federal Reserve raised its benchmark interest rate by 25 basis points in September to 3.75%-4% and maintained the range in October. A prolonged period of higher interest rates and bond yields could increase the opportunity cost of holding gold, which does not generate interest income.
Inflation is also influencing the outlook. US headline CPI inflation rose to 3.7% year on year in September from 3.5% in August, according to the Religare report. While inflation can increase gold’s appeal as a store of value, persistent price pressures could also delay monetary easing and keep interest rates elevated.
Geopolitical tensions present another set of competing factors. Uncertainty and supply disruptions can support gold’s safe-haven demand, while higher energy prices can add to inflationary pressures and influence central-bank policy.
Central bank purchases and investment flows
Demand from central banks and investors continues to be an important factor in the gold market.
Religare’s report cited revised World Gold Council estimates showing net central-bank purchases of approximately 57 tonnes in the first quarter of 2026 and 289 tonnes in the second quarter, taking first-half purchases to around 346 tonnes.
Global investment demand, however, has been uneven.
Gold ETFs recorded inflows of 62 tonnes in the first quarter, followed by outflows of 45 tonnes in the second quarter. The trend reversed in the third quarter, when global gold ETFs attracted inflows of $30.7 billion, equivalent to 211 tonnes, the report said.
Avinash Agarwal, Senior Vice President and Head of Equity at Bandhan Life, said the long-term outlook for gold remained positive, supported by central-bank purchases and a gradual shift in investor preference towards gold as an alternative to the US dollar.
However, he said gold prices would remain sensitive to US bond yields, dollar movements and the US government’s fiscal policies. For Indian investors, rupee movements would also influence domestic gold prices.
What is the outlook for gold and silver?
Religare Broking has identified an accumulation range of ₹1.30 lakh-₹1.35 lakh per 10 grams for gold and ₹1.50 lakh-₹1.63 lakh per kg for silver.
The brokerage has set targets of ₹1.50 lakh and ₹1.58 lakh oer 10 grams for gold, and ₹2.17 lakh and ₹2.55 lakh per kg for silver. Its identified key support or risk levels are ₹1.21 lakh per 10 grams for gold and ₹1.09 lakh per kg for silver.
These are the brokerage’s stated technical levels and market expectations, not assured price outcomes.
NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.