On Thursday, gold prices fell as the US dollar appreciated to its highest in over two weeks, limiting the demand for gold. There was also caution among investors ahead of the US jobs report.
In international markets, spot gold was down 0.1% to $4,077.13 an ounce, while US gold futures fell 0.2% to $4,075.80 an ounce. Analysts say the precious metal is still under pressure as expectations for reduced rate cuts continue.
According to OANDA senior market analyst Kelvin Wong, key resistance lies near $4,155, while further weakness could push prices toward $4,000-$3,980.
The US dollar index increased to 100.30, its highest in more than two weeks, making gold more expensive for foreign buyers.
According to the CME FedWatch tool, expectations for a December rate cut are just 33%, down from 49% just one day before. Gold, being a non-yielding asset, tends to come under pressure when interest rate expectations rise.
Economists surveyed expect the addition of 50,000 jobs. A softer-than-expected reading may revive hopes of policy easing, potentially supporting gold in the near term.
Despite the recent price pressure, investment demand remains steady. Holdings of SPDR Gold Trust, the world’s largest gold-backed ETF, edged up 0.22% to 1,043.72 tonnes.
In Chennai, gold prices fell. The price of 24-carat gold fell to Rs. 12,546 per gram compared to Rs. 12,655 a day earlier, while 10 grams traded at Rs. 1,25,460 compared to Rs. 1,26,550 yesterday.
Similarly, 22-carat gold slipped to Rs. 11,500 per gram from Rs. 11,600, with the 10-gram price easing to Rs. 1,15,000 from Rs. 1,16,000.
In Mumbai, gold prices edged lower. The price of 24-carat gold fell to Rs. 12,469 per gram from Rs. 12,486 a day earlier, while 10 grams traded at Rs. 1,24,690 compared to yesterday’s Rs. 1,24,860.
Likewise, 22-carat gold declined to Rs. 11,430 per gram from Rs. 11,445, with the 10-gram value decreasing to Rs. 1,14,300 from Rs. 1,14,450.
Also Read: Gold Price Today: Is the Rally Signaling a Fresh Wave of Global Inflation?
In the Multi-Commodity Exchange (MCX), domestic gold prices reflected global prices, with MCX Gold December futures down 0.23% to Rs. 1,22,768 per 10 grams, while MCX Silver was up 0.39% to Rs. 1,55,717.
Analysts see gold finding support between Rs. 1,22,350 and Rs. 1,21,680, with resistance expected around Rs. 1,23,650-Rs. 1,24,200.
Silver is likely to remain supported above Rs. 1,53,850-Rs. 1,52,500, with potential upside toward Rs. 1,56,440-Rs. 1,57,580.