Gold and Silver Prices Steady Amid Economic Uncertainty
New Delhi, Dec 6 (PTI) – In the national capital, gold prices remained unchanged at Rs 79,150 per 10 grams on Friday, as reported by the All India Sarafa Association. Meanwhile, silver experienced a decline, dropping by Rs 300 to settle at Rs 93,500 per kg, following a previous close of Rs 93,800 per kg on Thursday. This stability in gold prices comes amidst a backdrop of fluctuating economic indicators and geopolitical tensions that continue to influence market dynamics.
Current Market Overview
The price of gold, particularly that of 99.5% purity, held steady at Rs 78,750 per 10 grams. In futures trading on the Multi Commodity Exchange (MCX), gold contracts for February delivery saw a slight increase of Rs 181, or 0.24%, trading at Rs 76,657 per 10 grams. This minor uptick reflects the market’s anticipation of critical economic data, particularly the non-farm payroll and unemployment figures, which are set to be released later today.
Jateen Trivedi, Vice President of Research Analysis at LKP Securities, noted that gold is trading with minor gains as investors await these pivotal metrics. “These metrics are crucial for shaping the Fed’s policy outlook. While gold maintains a positive trajectory, the market remains cautious,” he stated.
The Impact of Economic Data
The upcoming jobs report is expected to play a significant role in influencing the Federal Reserve’s monetary policy. Stronger-than-expected macroeconomic data could lead the Fed to pause any potential rate cuts this month, which might negatively impact gold prices. Conversely, if the data falls short of expectations, it could trigger a spike in gold prices, as investors flock to safe-haven assets.
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, emphasized the dual nature of the economic indicators: “Stronger-than-expected US macroeconomic data might push the Fed to pause rate cuts this month, which may negatively impact gold prices. On the other hand, lower than expected data could lead to a spike in gold prices.”
International Market Trends
In the international markets, Comex gold futures rose by 0.42% to USD 2,659.60 per ounce, while silver traded 0.62% higher at USD 31.73 per ounce during Asian market hours. Analysts suggest that the ongoing geopolitical unrest, including the recent collapse of France’s government and political instability in South Korea, is creating a robust demand for safe-haven assets like gold and silver.
Manav Modi, Analyst at Motilal Oswal Financial Services Ltd, pointed out that gold continues to trade steadily despite a weakening dollar and ahead of the key jobs report. “The dollar fell after a series of weak data points reported from the US, which is supportive for the metal,” he added.
Geopolitical Factors at Play
The current geopolitical landscape is also contributing to the stability of gold prices. With increasing unrest in various regions, investors are likely to seek refuge in precious metals. The calls for the impeachment of South Korean President Yoon Suk-Yeol, following his controversial attempts to impose martial law, further underscore the global climate of uncertainty.
Conclusion
As gold prices remain flat and silver experiences a slight decline, market participants are closely monitoring economic indicators that could sway the Federal Reserve’s policy decisions. The interplay of domestic and international factors, including economic data and geopolitical unrest, continues to shape the landscape for precious metals. Investors are advised to stay informed and consider these dynamics when making investment decisions in the precious metals market.
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