Gold Prices Decline as Strong US Jobs Data Dents Rate Cut Hopes

Gold prices experienced a notable decline on Friday following a stronger-than-expected jobs report from the United States. The data diminished expectations for a potential interest rate cut by the Federal Reserve in its upcoming December meeting. As the US dollar strengthened and geopolitical tensions eased, gold prices fell in both domestic and international markets.

On the Multi Commodity Exchange (MCX), gold futures traded down by 0.28% at Rs 1,22,373 per 10 grams, a decrease from the previous close of Rs 1,22,727. By 10:20 AM, the price had further dropped to approximately Rs 1,22,155 per 10 grams, marking a decline of 0.47%. Silver prices mirrored this downward trend, with MCX silver opening 0.26% lower at Rs 1,53,750 per kg, later falling 1.11% to Rs 1,52,433.

Domestic Price Variations in Major Cities

In Mumbai, gold prices showed a slight increase. The price of 24-carat gold reached Rs 12,448 per gram, up from Rs 12,426 the previous day. For 10 grams, the price rose to Rs 1,24,460 compared to Rs 1,24,260 yesterday. Similarly, 22-carat gold increased to Rs 11,410 per gram from Rs 11,390, while the 10-gram price climbed to Rs 1,14,100 from Rs 1,13,900.

Conversely, in Chennai, gold prices decreased. The price of 24-carat gold fell to Rs 12,506 per gram from Rs 12,546, with 10 grams trading at Rs 1,25,020, down from Rs 1,25,460. For 22-carat gold, the price slipped to Rs 11,460 per gram from Rs 11,500, and the 10-gram price eased to Rs 1,14,600 from Rs 1,15,000.

Global Market Response to US Jobs Data

Internationally, gold faced pressure after the robust jobs report. Spot gold was trading down 0.1% at $4,072.87 per ounce, while US gold futures were up 0.3% at $4,071.90. Spot silver decreased by 0.5%, landing at $50.35 per ounce.

The latest US nonfarm payrolls report revealed an increase of 119,000 jobs in September, significantly higher than the expected decrease of 50,000. Although the unemployment rate rose to 4.4%, wage growth surprised analysts with an increase to 3.8%, slightly surpassing prior figures.

Analyst Rahul Kalantri of Mehta Equities provided insights into the technical levels influencing gold and silver prices. He noted that in the global market, support for gold lies between $4,032 and $4,000, with resistance at $4,110 to $4,140. For silver, support is seen at $50.10 to $49.65, while resistance is between $51.20 and $51.50.

On the MCX, gold found support at Rs 1,22,050 to Rs 1,21,480, facing resistance at Rs 1,23,050 to Rs 1,23,700. Silver may attract buying interest above Rs 1,52,350, with resistance emerging near Rs 1,55,980.

As market participants digest the implications of the strong US jobs report, the outlook for gold remains uncertain, with traders closely monitoring economic indicators in the coming weeks.