Gold prices remained steady on Monday (January 6) as investors await key US economic data, including the December nonfarm payrolls report. Spot gold was flat at $2,635.39 per ounce by 0510 GMT, while US gold futures dipped 0.2% to $2,646.80 per ounce.
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In India, gold prices experienced slight declines.
In Delhi, 24K gold was priced at ₹78,850 per 10 grams, down by ₹10, while 22K gold stood at ₹72,290 per 10 grams.
In Mumbai, 24K gold traded at ₹78,700 per 10 grams, and 22K gold was priced at ₹72,140 per 10 grams.
Factors influencing gold prices
The upcoming US jobs report could influence gold’s price movement this week.
Tim Waterer, Chief Market Analyst at KCM Trade, mentioned that any economic disappointments could weaken the US dollar and boost gold prices.
Investors are also watching for key data such as ADP hiring and job openings, as well as the minutes from the Federal Reserve’s last meeting, to gauge the future direction of interest rates.
Gold tends to perform well in low-interest-rate environments and acts as a hedge against inflation and geopolitical instability.
The return of US President-elect Donald Trump to office on January 20 could introduce inflationary pressures, particularly due to proposed tariffs and protectionist policies.
This may lead the Federal Reserve to proceed cautiously on rate cuts, which could limit gold’s upside potential.
Outlook and investment perspective
According to Darshan Chauhan, Director at Sky Gold, gold prices are expected to rise in April 2025, driven by festive season demand.
Rahul Kalantri, VP of Commodities at Mehta Equities, highlighted recent volatility in gold prices, but noted a recovery despite challenges from a stronger US dollar and rising bond yields.
He also emphasised that weak manufacturing data from developed nations has fueled demand for gold as a safe haven.
Looking ahead, gold has support at $2,622-$2,607 per ounce and resistance at $2,658-$2,672 per ounce. In India, gold’s support levels are ₹77,110-₹76,880 per 10 grams, with resistance at ₹77,570-₹77,750 per 10 grams.