Gold Prices Today: Risk aversion, positive US jobs data weigh on sentiments; traders eye Fed minutes

Prices have been consolidating above the $2,000-per-ounce mark, and experts see it as a major support for COMEX gold prices.

Gold prices in domestic and international markets came off from their highs on April 10  and fell on risk aversion as investors awaited the minutes from the US Federal Reserve’s last policy meeting on Wednesday. The market was closed on April 7 on account of Good Friday.

At 11.16 am, the gold price on COMEX was at 2,009.05 per ounce, down 0.9 percent from the previous close, while the June gold contract on Multi Commodity Exchange of India (MCX) was around Rs 60,125 per 10 grams, down 0.6 percent.

On the MCX, the most-active June gold contract is seen in the range of Rs 60,054-Rs 61,066 per 10 grams, according to ICICI Direct Research.

The bullion market will closely look for any clues from the minutes of the US Fed’s last meeting to gauge the central bank’s stance on monetary policy going forward.

Last week, positive US jobs data, coupled with a fall in unemployment rate in the country weighed on gold’s safe-haven appeal.

In March, the US added 236,000 jobs against expectations of 228,000. Unemployment rate dipped to 3.5 percent from 3.6 percent as well. This raises expectations among investors about further rate-hikes by the Fed at the upcoming meetings.

“Ahead of the (US) nonfarm payroll report, gold got hit by profit-taking as too much of the trading world was closing up shop for the long weekend,” said Ed Moya, senior market analyst at OANDA, Americas.

Additionally, investors will wait for the release of the US’ consumer price index data on Wednesday. A dip in inflation rate may be bullish for gold and silver, according to analysts.

Concerns that the US’ economy is heading towards a possible recession had spooked traders, and pushed gold prices above the key level of $2,000-per-ounce mark in March. Prices have been consolidating above the $2,000-per-ounce mark, and experts see it as a major support for COMEX gold prices.

“The bull case remains for gold, but traders need to see how the market reset,” Moya added.

Back home, the Reserve Bank of India paused its rate-hike cycle last week, which surprised the markets.

RBI’s decision is likely to support the domestic bullion market. More liquidity in the system usually drives demand for investments in bullion. Ahead of the domestic wedding season, demand for jewellery in India is expected to rise.

However, higher prices may also dent demand, according to jewellers.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol  advises users to check with certified experts before taking any investment decisions.