Gold prices in India managed to eke out minor gains during Friday morning's trading session, following a week marked by significant volatility. On the Multi Commodity Exchange (MCX), the most active contract for gold expiring on February 5 was seen trading at Rs 1,37,805 for every 10 grams. This represented a modest increase of Rs 63, or 0.05%, from the previous close.
Broader Market Sentiment Stays Cautious
Despite the slight uptick, the overall mood in the bullion market remained subdued. Analysts pointed to two primary factors exerting downward pressure. Firstly, the US dollar held firm, trading marginally higher around the 98.95 mark in early Asian trade. A stronger greenback makes dollar-priced gold more expensive for holders of other currencies, dampening international demand. Secondly, ongoing adjustments in major global commodity indices continued to trigger selling, weighing on the metal's appeal.
Traders Await Key US Economic Data
Market participants adopted a wait-and-watch approach ahead of the crucial release of the US non-farm payrolls data scheduled for later in the day. This employment report is a key indicator of the health of the American economy and heavily influences the Federal Reserve's monetary policy stance. Traders are cautious, as strong data could bolster the dollar further and pressure gold, while weak figures might support safe-haven flows into the yellow metal.
In international markets, the picture was mixed. While spot gold was down 0.4% at $4,458.10 per ounce, US gold futures for February delivery edged 0.2% higher to $4,467.60 per ounce by 0126 GMT.
Gold Rates Across Major Indian Cities
Here is a look at the prevailing gold prices in key Indian cities for Friday, reflecting the day's market movement:
- Ahmedabad: 22K gold at Rs 12,720; 24K gold at Rs 13,876.
- Bangalore: 22K gold at Rs 12,715; 24K gold at Rs 13,871.
- Bhubaneswar: 22K gold at Rs 12,715; 24K gold at Rs 13,871.
- Chennai: 22K gold at Rs 12,800; 24K gold at Rs 13,964.
- Delhi: 22K gold at Rs 12,730; 24K gold at Rs 13,886.
- Hyderabad: 22K gold at Rs 12,715; 24K gold at Rs 13,871.
- Jaipur: 22K gold at Rs 12,730; 24K gold at Rs 13,886.
- Kanpur: 22K gold at Rs 12,730; 24K gold at Rs 13,886.
- Kolkata: 22K gold at Rs 12,715; 24K gold at Rs 13,871.
- Mumbai: 22K gold at Rs 12,715; 24K gold at Rs 13,871.
The short-term trajectory for gold prices is likely to be dictated by the interplay between the US dollar's strength and the outcome of the economic data from the United States, keeping Indian investors and jewelers on alert.
