Mumbai: Gold prices remained steady on Friday, poised for a weekly gain as investors awaited key US employment data. Spot gold traded at USD 2,911.00 per ounce as of 05:48 GMT, unchanged from the previous session. The metal has gained 1.7 per cent this week, benefiting from economic uncertainty and concerns over US trade policies and inflation.
US Dollar Weakness Supports Gold
A weaker US dollar has been a key factor supporting gold prices. The US dollar index remained near a four-month low, making gold more attractive to investors holding other currencies. The dollar's weakness has been fueled by shifting US trade policies and expectations around future Federal Reserve rate cuts.
Trump's Trade Policies Add to Market Volatility
President Donald Trump’s fluctuating trade stance has continued to unsettle markets. On Thursday, Trump suspended a planned 25per cent tariff on most Canadian and Mexican imports, marking another shift in his trade policies. The move added to investor uncertainty, boosting demand for gold as a safe-haven asset.
Also Read: RBI Cracks Down on Gold Loan Irregularities: Stricter Regulations on the Horizon
Gold Prices in India Decline
Despite global gains, gold prices in India fell on Friday. The price of 24-carat gold dropped Rs 510 to Rs 8,765.3 per gram, while 22-carat gold declined Rs 470 to Rs 8,036.3 per gram. The decline is attributed to local demand fluctuations and currency movements.
Fed's Stance on Rate Cuts in Focus
Federal Reserve Governor Christopher Waller indicated he does not support a rate cut this month, despite market expectations. However, he suggested that if inflation eases later in the year, rate reductions could be considered. Lower interest rates generally support gold, as they reduce the opportunity cost of holding the non-yielding metal.
Also Read: Maharashtra Economic Survey Projects Growth At 7.3 Pc In FY 25; Industry & Service Sectors Show Dip
Investors Await US Non-Farm Payrolls Report
The next key market catalyst is the US non-farm payrolls report, due at 13:30 GMT. Analysts polled by Reuters expect the US economy to have added 160,000 jobs in February. A strong jobs report could strengthen the US dollar and pressure gold prices, while a weaker-than-expected figure may boost gold further.
As investors assess economic signals, gold remains an attractive hedge against uncertainty, with its long-term outlook appearing bullish.
