US gold futures for December delivery slipped 0.7% to $3,626.10 an ounce.
The optimism stems from weak US jobs data that reinforced the case for monetary easing. Non-farm payrolls showed only 22,000 new jobs in August, well below forecasts of 75,000, while the unemployment rate rose to 4.3%, the highest in nearly four years.Traders have fully priced in a 25-basis-point cut this month, with a small chance of a larger 50-bp reduction, according to CME FedWatch.
“Basically, all of the tailwinds are blowing for gold at the moment and, notwithstanding an inflation shock this week, we will make a good test of $3,600,” said Kyle Rodda, financial market analyst at Capital.com.
Domestic market levels
Rahul Kalantri, VP Commodities at Mehta Equities, said gold extended their gains last week amid global cues and a weaker rupee.“Gold has support at ₹1.07 lakh- ₹1.06 lakh per 10 grams while resistance is at ₹1.084 lakh–1.089 lakh per 10 grams,” he noted.
Broader trends
Bullion has gained 37% so far this year after rising 27% in 2024. The rally has been fuelled by a weaker dollar, steady central bank purchases, and rising geopolitical and economic uncertainties.
China’s central bank extended its gold buying into a tenth straight month in August, while speculators also raised their bullish bets.
Darshan Desai, CEO of Aspect Bullion & Refinery, said, “Gold prices are holding near all-time highs following a weaker-than-expected US jobs report, which has boosted expectations for not just two but potentially three interest rate cuts by the Federal Reserve before year-end. Ongoing policy uncertainties and steady central bank buying will likely continue supporting gold.”
All eyes now turn to the US inflation data due later this week, seen as a key trigger for the next leg of the rally.
–With Reuters inputs
