On Friday, Gold prices fell back after an unexpectedly strong US jobs report reduced hope of a rate cut by the in the upcoming December meeting.
With the US dollar gaining strength and easing geopolitical tensions, gold continued its decline in the domestic and global markets for the week.
On the Multi Commodity Exchange (MCX), gold futures traded 0.28%lower at Rs 1,22,373 per 10 grams, compared to the previous close of Rs. 1,22,727. As of 10:20 AM, gold was around Rs 1,22,155 per 10 grams, down 0.47%.
Silver followed a steeper downward trajectory. MCX silver opened 0.26% weaker at Rs. 1,53,750 per kg and later dropped 1.11% to Rs. 1,52,433.
Domestic Gold Prices
In Mumbai, gold prices saw a slight increase. The price of 24-carat gold reached at Rs. 12,448 per gram versus Rs. 12,426 a day earlier while the 10 grams traded at 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 and the price of 10 grams of gold reached Rs. 1,14,100 from Rs. 1,13,900.
In Chennai, gold prices fell. The price of fell to Rs. 12,506 per gram compared to Rs. 12,546 a day earlier, while 10 grams traded at Rs. 1,25,020 compared to Rs. 1,25,460 yesterday.
Similarly, 22-carat gold slipped to Rs. 11,460 per gram from Rs. 11,500, with the 10-gram price easing to Rs. 1,14,600 from Rs. 1,15,000.
Global Prices Under Pressure After US Jobs Beat
In the international markets, spot gold was trading down 0.1% at $4,072.87 per ounce, while US gold futures were trading up 0.3% at $4,071.90. Spot silver was down to $50.35 per ounce, down 0.5%.
Analysts pointed to some renewed uncertainty after the latest US nonfarm payrolls data. Employment increased by 119,000 in September, which is more than double the anticipated 50,000 fall predicted by the economists.
Although there was an increase in unemployment to 4.4%, there was a wage growth surprise with an increase to 3.8%, slightly above previous numbers.
Analyst View
Rahul Kalantri of Mehta Equities highlighted key technical levels. In the global market, he sees support for gold at $4,032-$4,000 and resistance at $4,110-$4,140. For silver, support sits at $50.10-$49.65, with resistance at $51.20-$51.50.
On , gold found support at Rs. 1,22,050-Rs.1,21,480 and face resistance at Rs. 1,23,050-Rs. 1,23,700. Silver is likely to see buying interest above Rs. 1,52,350, with resistance emerging near Rs. 1,55,980.