• Gold traders will be waiting for non-farm payrolls data from the US Labor Department later this week
Gold prices in India declined today, while silver declined, tracking a similar global trend as Covid protests in China dampened global risk sentiment. On MCX, gold futures fell 0.25% to ₹52,420 per 10 grams, extending losses for the second day. Silver fell 0.8% to Rs 61,185 per kg. Metals and other commodities, including crude oil, declined today as unrest in China hit the demand outlook.
In global markets, spot gold was down 0.4% at $1,749.00 an ounce. Among other precious metals, silver slipped 1.8% to $21.21, platinum by 0.3% to $978.00 and palladium by 0.3% to $1,846.94. The dollar index was up 0.4%, amid global risk-off sentiment, making greenback-priced bullion more expensive for buyers holding other currencies.
According to analysts, protests in China have dampened global risk sentiment. “Risk off moves were seen across asset classes this Monday morning in the Asia session. "The dollar strengthened across the board, especially against commodity currencies," IFA Global said in a note.
Gold traders will await non-farm payrolls data from the US Labor Department later this week for another clue on the Fed's monetary policy. Federal Reserve Chairman Jerome Powell is also scheduled to speak on the US economy later this week. Most market participants have priced in a 50 basis-point hike at the Fed's December meeting after minutes from the last policy meeting indicated a slower pace of hikes. Higher interest rates increase the opportunity cost of holding a non-yielding metal.
"Gold and silver prices rose last week following dovish remarks from US Fed officials in the minutes of the November meeting. US Fed officials signaled a further slowing of interest rate hikes, which weighed on the dollar index and Lowering of US bond yields supported the precious metal prices. Gold and silver also moved higher due to geo-political tensions and mixed economic data released last week," Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said.
“We expect gold and silver to remain volatile this week ahead of US quarterly GDP data and ADP non-farm employment data. Gold has found support at $1734-1720 while resistance lies at $1755-1764. Silver has found support at $20.88-20.65, while resistance lies at $21.42-22.58. Against the rupee, gold has taken support near ₹52,420-52,250, while resistance lies at ₹52,680-52,820. Silver has taken support near ₹61,250-60,680, while resistance lies near ₹62,100-62,340."
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