Gold Falls 3% as Fed Tightening Expectations Weigh; Indian Equities Rebound Strongly: Aetram Group
New Delhi [India], November 3: Gold ended the last week of October 26 week under pressure, with international bullion declining about 3% as expectations of prolonged higher U.S. interest rates, inflation concerns and a firmer dollar reduced support for the non-yielding metal. Aetram India Research said the week’s decline also reflected profit-taking and broader liquidation pressure across global markets after a sharp technology-led sell-off on Wall Street.
International Gold closed near $3,873 per ounce, down 3.03% for the week, while MCX Gold Futures ended at ₹138,419, registering a weekly decline of 2.62%. The U.S. 10-year Treasury yield finished near 4.93%, lower by around 1.18% over the week, although yields remained elevated enough to keep interest-rate sensitivity high across precious metals.
Aetram India Research observed that Gold faced a combination of changing Federal Reserve expectations and volatile global risk sentiment. The Federal Reserve kept rates unchanged during the week, while persistent inflation concerns maintained expectations of further policy tightening. Gold also came under additional pressure as the sharp retreat in global technology shares triggered broader portfolio adjustments. “The fall in Gold reflects both monetary-policy pressure and short-term liquidation. Lower Treasury yields towards the end of the week were not sufficient to immediately restore bullion momentum,” the research team noted.
Indian equities, in contrast, completed a strong recovery week. The Sensex closed at 74,459.53, gaining 1.83%, while the Nifty 50 advanced 2.00% to 23,053.10. Bank Nifty finished at 54,686.95, higher by 0.74%. Pharma led the supplied sector performance with a 7.09% weekly rise, followed by Realty at 3.77%, Nifty Next 50 at 2.86%, Midcap 50 at 2.78% and Metal at 2.67%. All major sector indices in the supplied data closed the last week of October higher.
