On Friday, the gold rate in India stayed largely unchanged as the yellow metal remained stable in the worldwide market. Gold December futures on the Multi Commodity Exchange were trading flat with a bearish bias at Rs 51,965 per 10 grams. On the MCX, silver December futures were trading at Rs 61,600 per kilogram, up Rs 254 or 0.4%.
According to Reuters, yellow metal prices were steady globally ahead of the U.S. employment report, which might help investors gauge the Federal Reserve’s rate-hike path, and were on track for their highest weekly rise since March. The spot price of gold stayed unchanged at $1,709.69 per ounce. Gold futures in the United States were unchanged at $1,719.90.
Comex gold is trading with a flat momentum ahead of the U.S. Nonfarm Payrolls report. Gold on the Comex has firm support between $1,700-$1,695 per ounce. Fed members spoke of an aggressive posture once more, as the market expects the Fed to raise rates by 1.25 basis points in 2022. The MCX Gold December contract has already gained 3.5% in a week due to a lower dollar index, a strong rupee, and Christmas season retail demand. We predicted that MCX gold in December would rise to Rs. 52,100 per 10 grams.
After finishing on a flat note yesterday, OMEX gold is trading a little down near $1718 per ounce, as a mixed set of economic indicators added to concern over the rate hike pace. The U.S. dollar has found support near this week’s lows as a result of the ADP Employment report, which revealed that private companies added more than the projected 208,000 positions in September, signaling labor market resilience, while the Services PMI expansion remained steady in September at 56.7. FED officials’ hawkish statements have also boosted the dollar.
On indecision, gold may continue below $1720 per ounce ahead of the payroll statistics, while any substantial job additions announced may lead to fresh dollar strength and push prices lower toward the critical $1700 per ounce level.