The US non-farm payrolls data has been released by the Bureau of Labor Statistics, which indicated only a 199,000 gain in December, failing the consensus estimation for the month at 400,000. The non-farm data of the US is important because - the US Fed will decide about the interest hike based on their economic growth, manufacturing data, and employment scenario. If the economy does not develop as the Fed expected, and employment data fails to reach expectations, then the Fed might be forced to think twice about the rate hike. So, the gold rates will be impacted accordingly, based on the rate hike. However, the US inflation rate is not in a position to fall yet, which is why the interest hike is an important factor.
In addition to that, Dr. Ravi Singh, Vice President and Head of Research, ShareIndia said, "The Federal Reserve's FOMC minutes that were released Wednesday afternoon indicated a very tight US job market and rising inflation might require the central bank to raise interest rates even sooner than many already expected, and begin reducing its overall asset balance sheet. The minutes suggested inflationary concerns outweigh the economic risks posed by the rampant Omicron variant of the coronavirus. The probability that the Fed will raise interest rates in March rose to greater than 70%, according to the Fed funds futures market." Fed rate hike can drag down the gold rates further.
"The key outside markets yesterday see Nymex crude oil futures prices higher, at a 7-week high and trading around $79.75 a barrel. The US dollar index is slightly up today. Traders are advised to create fresh buy positions near given support levels, traders should focus on important technical levels given below for the day," Dr. Singh added.
Indian gold rates are dependent on global prices. As the metal fell significantly till today mid-day trading, gold was subdued in India. Today, on January 7, 2022, in the country gold prices dropped by Rs. 320/10 grams. For 3 days in a row, the precious metal has fallen significantly, in the domestic markets, deriving global prices. The 22 carat gold prices are quoted at Rs. 46,510/10 grams and 24 carat gold rates are quoted at Rs. 48,510/10 grams. Today gold prices in Chennai, Bangalore, Delhi and Hyderabad have fallen by Rs. 310-350/ 10 grams. However, since today evening, gold rates started to gain marginally globally. So, tomorrow, the metal's prices can also rise in India.
Gold rates are quoted differently, daily. Today's gold rates in major Indian cities follow:
|City||22 carat (INR/10 Grams)||24 carat (INR/10 Grams)|
The Comex gold futures gained by 0.01% and were quoted at $1789.4/oz, till last traded. On the earlier day, Comex gold futures closed at $1789.2/oz. The spot gold prices were quoted at $1791.9/oz till last traded. The US dollar index in the spot market stood at 96.13, gaining only by 0.14%. However, in India, the MCX gold in February future quoted at Rs. 47,447/10 grams, falling marginally by 0.01%, till last traded.