Gold price slips just below Rs 1.58 lakh on strong US jobs data; is it the right time to invest?

Gold price opened the February 12 session lower on MCX at Rs 1,57,980 per 10 grams of 24-carat purity, down 0.49 percent from its previous close.

On Comex, the metal's price was at $5,028 an ounce (2:50 am GMT), representing a decline of around 0.31 per cent from its previous close.

Gold prices declined after the US nonfarm payrolls data released on Wednesday came in stronger than expected for January. The labour market reading dampened expectations that slowing employment would prompt the Federal Reserve to pursue additional interest rate cuts.

Traders on FedWatch are currently pricing in at 94.6 percent for 350-375 basis points in the upcoming policy decision.

The International Bullion and Jewellers Association pegged the standard price of gold at Rs 1,56,113 for 10 grams of 24-carat purity on its 18:30 pm rate session, which is percent up from Rs 1,55,700 in the last 24 hours.

Meanwhile, the rupee traded slightly weak at 90.70 against the dollar. Analysts reason that higher crude prices, especially with increased imports from Western markets, could widen the import bill and keep pressure on the currency.

Gold prices vary by purity. Check the prices of gold based on its purity:

City-wise gold prices in India today

Gold rates across India’s major cities showed remarkable uniformity, with only marginal differences due to local taxes, jeweller margins, and logistics costs.

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“On MCX, immediate support is seen near Rs 1,55,000, while resistance is placed in the Rs 1,60,000–Rs 1,62,000 zone, with volatility likely to increase around U.S. data releases," said Jateen Trivedi, VP Research Analyst (Commodity and Currency) at LKP Securities.

Meanwhile, investors are increasingly chasing returns in precious metals. The latest data from AMFI shows that Gold exchange-traded funds (ETFs) recorded record inflows of around Rs 24,000 crore in January. For the financial year 2026, cumulative inflows into gold ETFs stood at around Rs 61,000 crore.

"Gold and silver also give you flexibility in how you play them: physical, ETFs, or exchange derivatives, depending on your risk appetite and time horizon," says Navneet Damani of Motilal Oswal Financial Services.

Damani noted that gold prices are heavily driven by central bank buying. "We're seeing 800-1000 tonnes a year, led by China and other emerging markets. These buyers aren't reacting to day-to-day rate moves—they're making strategic decisions about reserves and de-dollarisation. Add in worries about fiscal deficits and geopolitical risks, and gold becomes less of a tactical trade and more of a structural hedge."

Reports suggest that central banks' net gold buying totalled 863 tonnes, following record purchases in the years 2022 to 2024 amid a strong rally in the price of the precious metal.