Gold prices in India closed 0.6% higher at Rs. 144,095 on Saturday, November 7, 2026, as the dollar weakened and bond yields declined following the US midterm elections. The dollar hit a one-month low after Democrats made significant gains, raising expectations of a divided government and potential policy shifts under the Trump administration. Citi remains bullish on gold, forecasting prices to reach $4,500 per ounce in the next 0-3 months and $5,000 over 6-12 months, citing potential de-escalation in the Yemen-Saudi conflict and the reopening of the Strait of Hormuz.
Physical demand for gold remains weak, with Perth Mint’s October sales dropping 30% month-on-month to 32,933 ounces and 61% year-on-year. China’s gold consumption rose slightly by 0.28% year-on-year to 684.623 tonnes in the first nine months of 2026, driven by a 26.26% increase in bar and coin demand. However, jewelry consumption fell 33.86% to 178.612 tonnes. China also added 103.26 tonnes to its gold reserves, marking 23 consecutive months of purchases.
The World Gold Council revised its 2026 investment demand growth forecast downward to 200 tonnes from 400 tonnes, as bar and coin demand weakened 19% year-on-year. Central bank purchases increased 42% to 321 tonnes in the third quarter. India’s gold demand is expected to decline to around 650 tonnes in 2026, a six-year low, due to high prices and rural economic challenges.
Technically, gold is seeing short covering, with open interest declining 2.35% to 15,716 contracts while prices rose by Rs. 861. Support is placed at Rs. 142,930, with potential downside testing Rs. 141,760. Resistance is at Rs. 145,690, with the next upside target at Rs. 147,280.