NEW DELHI — Gold prices dropped significantly on Friday after stronger-than-expected U.S. September jobs data dampened expectations of a near-term interest rate cut by the Federal Reserve.
On the Multi Commodity Exchange (MCX), December gold futures were firmly in the red as of 12:43 p.m., falling Rs 1,067, or 0.87 percent, to Rs 1,21,697 per 10 grams. December silver futures also declined sharply, slipping 2.17 percent, or Rs 3,349, to Rs 1,50,802 per kilogram.
According to the India Bullion and Jewellers Association (IBJA), the retail price of 10 grams of 24-carat gold stood at Rs 1,22,149, down from Rs 1,22,881 on Thursday.
Analysts said the dip followed a stronger U.S. dollar and robust labor market data. The dollar index remained above the 100 mark, weighing on gold prices alongside the surprise in U.S. nonfarm payrolls.
“The Labour Department’s closely watched release — postponed due to the government shutdown — showed nonfarm payrolls in September rising by 119,000, more than double the projected 50,000 increase,” said Manav Modi, analyst for precious metals at Motilal Oswal Financial Services. “This reinforced the narrative of a resilient labor market.”
The strong employment data reduced the likelihood of a December rate cut, with traders now pricing in just a 30 to 40 percent probability, as they weigh Federal Reserve commentary against broader economic indicators.
Market sentiment was also influenced by ongoing developments surrounding a potential Russia-Ukraine peace agreement, while strong physical demand from China and Australia provided some support to precious metals through the month.
Rahul Kalantri, VP–Commodities at Mehta Equities Ltd., said gold has support at Rs 1,22,050–1,21,480 and resistance at Rs 1,23,050–1,23,700. Silver has support at Rs 1,53,050–1,52,350 and resistance at Rs 1,55,140–1,55,980. (Source: IANS)
