New Delhi, Nov 21 (IANS) Gold prices saw a massive dip on Friday amid stronger than expected US September jobs data, which faded expectations of a near-term Federal Reserve rate cut.
Gold futures contracts on the Multi Commodity Exchange (MCX) were firmly in red (as of 12.43 pm) as the December futures dropped by Rs 1,067, or 0.87 per cent, to Rs 1,21,697 per 10 grams.
MCX Silver December contracts dipped 2.17 per cent or Rs 3,349 to Rs 1,50,802 per kg.
The price of 10 grams of 24-carat gold was at Rs 1,22,149 down from Rs 1,22,881 on Thursday, according to data published by the India Bullion and Jewellers Association (IBJA).
Analysts said that the dollar index remained strong against its major crosses, sustaining above 100 mark, which acted as a factor in easing of gold prices, apart from adverse jobs data in the US.
“The Labour Department’s closely watched release — postponed due to the government shutdown — showed nonfarm payrolls in September rising by 119,000, more than double the projected 50,000 increase, reinforcing the narrative of a resilient labour market,” said Manav Modi, analyst–precious metal-research, Motilal Oswal Financial Services Ltd.
Market expectations for a December rate have now eased, with traders now pricing in around 30 per cent to 40 per cent probability of a rate cut, as traders weigh remarks from Federal Reserve officials alongside broader economic indicators.
Meanwhile, ongoing developments related to a potential Russia-Ukraine peace agreement are influencing overall market sentiment. Strong physical demand from China and Australia provided support to precious metals through the month.
According to Rahul Kalantri, VP Commodities, Mehta Equities Ltd, gold has support at Rs 1,22,050 to 1,21,480 zone while resistance at Rs 1,23,050 to 1,23,700 zone. Silver has support at Rs 1,53,050 to 1,52,350 zone while resistance at Rs 1,55,140 to 1,55,980 zone.
–IANS
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