Gold Prices Today: Yellow metal falls ahead of US non-farm payroll data

On the Multi Commodity Exchange of India, the most-active June gold contract is seen in the range of Rs 60,330-Rs 61,280 per 10 grams.

Gold was trading lower in the red in international and domestic markets as investors remained cautious ahead of the release of the US’ non-farm payroll data on April 7.

Prices, however, are near all-time high levels as market fundamentals are still favourable for the yellow metal, experts said.

The Reserve Bank of India (RBI) on April 6 surprised everyone by keeping interest rates unchanged at 6.5 percent against expectations of a 25-basis-point hike. A pause in the rate-hike cycle is expected to create more liquidity in the market and support investments in gold and silver.

After a pause in January, RBI purchased three tonnes of gold in February, which lifts the central bank’s holdings of the precious metal to around 790 tonnes, according to data by the World Gold Council.

At 10.47 am, the June gold was trading at around Rs 60,639 per 10 grams on the Multi Commodity Exchange (MCX), down 0.4 percent, while Comex gold was trading at 2,028.80 a troy ounce, down 0.3 percent from the previous close.

“Gold’s rally is taking a brief timeout before it makes another attempt at a record high. Demand for safe-havens has never been better since recession risks have not been this high in decades, banking concerns remain, and excessive pessimism for equities,” Ed Moya, senior market analyst at OANDA, Americas, said in a note.

Investors will be monitoring the release of the US non-farm payroll data for, as it indicates the number of jobs in the country’s economy.

The US ADP employment change, which indicates the number of private jobs in the country, showed that private businesses created 145,000 jobs in March. This was below expectations of 261,000. If the non-farm payroll data emerges to be below analysts’ expectations, it may signal a slowdown in the labour market, thereby supporting demand for safe-haven assets such as gold.

A slowdown in the labour market may prompt the US Federal Reserve to think about a pause in its interest-rate cycle, going forward.

“Gold is expected to trade range-bound between $2,000 and $2,030 (on COMEX) as bulls eye record high of $2,075. Outlook is constructive on economic slowdown concerns,” said Praveen Singh, fundamental currencies and commodities analyst at Sharekhan by BNP Paribas.

On the Multi Commodity Exchange of India, the most-active June gold contract is seen in the range of Rs 60,330-Rs 61,280 per 10 grams.

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