Gold prices across India registered a decline on Friday as global market sentiment was influenced by weakening expectations of a US Federal Reserve interest rate cut in December. The shift in outlook came after the delayed release of the US jobs report, which created renewed uncertainty regarding economic conditions and future monetary policy decisions. Investors responded by reassessing their exposure to precious metals, leading to pressure on both gold and silver prices in domestic and international markets.
In Mumbai, 24-carat gold was priced at Rs 124250 per 10 grams, while 22-carat gold traded at Rs 113890 per 10 grams. These prices are exclusive of GST, making charges, and additional retailer premiums. Silver prices also saw a notable correction, with the spot market quoting Rs 164900 per kilogram. The latest trend reflects a cautious stance among traders, who are closely tracking developments in the global economy.
Market analysts noted that expectations of rate cuts had previously boosted gold prices, since lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold. However, with the likelihood of a near-term rate cut diminishing, investors are now repositioning their portfolios. This has softened demand for gold, resulting in the observed price correction.
On the Multi Commodity Exchange MCX, gold futures for December 5 delivery slipped 0.16 percent to Rs 122531 per 10 grams. The decline in futures contracts highlights the uncertainty among traders, who are awaiting further clarity from upcoming economic data releases and policy statements from the US Federal Reserve. Silver futures experienced an even sharper drop, falling 1.14 percent to Rs 152400 per kilogram, underscoring the broader weakness in precious metals.
Economists believe that the delayed US jobs report has played a key role in shifting market sentiment. The data, which investors often use to gauge inflationary trends and economic strength, is closely linked to monetary policy outlooks. Any sign of resilience in the labor market could reduce the urgency for the Federal Reserve to implement a rate cut, thereby tempering global gold demand.
Domestically, gold demand remains steady in the retail market due to wedding season purchases. However, price-sensitive consumers may delay bulk buying if the downward trend continues. Jewellers across major metro cities including Delhi, Chennai, Kolkata, and Hyderabad are monitoring price movements closely, as even marginal changes can significantly influence footfall and sales volumes.
With global factors continuing to dominate market trends, bullion traders expect short-term fluctuations in gold and silver prices. The next few weeks will be crucial in determining whether the December policy meeting will restore confidence among investors or sustain the current cautious outlook.
