Gold prices experienced a modest increase, closing up 0.21% at Rs 134,409, as market participants evaluated the postponed US jobs data and the shifting guidance from the Federal Reserve. Sentiment remained broadly supportive following remarks from New York Fed President John Williams, who suggested that monetary policy is appropriately positioned as we approach 2026, with expectations for further moderation in inflation alongside increasing risks in the labor market.
In a move that underscores a dovish stance, Fed Governor Stephen Miran contended that the fundamental inflationary pressures are less pronounced than the headline figures suggest, cautioning that an excessively restrictive policy could lead to unwarranted job losses. He reiterated his preference for a more accelerated pace of easing after the Fed’s cumulative 75 basis points rate cuts this year. In terms of labor market indicators, US Nonfarm Payrolls increased by 64,000 in November, surpassing forecasts, while the figures for October were significantly adjusted downward as a result of anomalies stemming from the government shutdown.
Global fundamentals remained favorable as central banks persisted in their aggressive accumulation of gold. The People’s Bank of China has maintained its purchasing trend for thirteen consecutive months, as global central banks collectively increased their holdings by a net 53 tonnes in October. Physically backed gold ETFs have achieved their sixth consecutive month of inflows, resulting in assets under management reaching a new high. Nonetheless, physical demand in India and China has remained subdued as a result of record prices and volatility, resulting in broader discounts.
From a technical perspective, the market experienced renewed buying interest, evidenced by a 2.39% increase in open interest alongside a price gain of Rs 279. Gold currently finds itself with immediate support at Rs 133,365; a breach of this level may lead to a test of Rs 132,320. On the upside, resistance is observed at Rs 135,400, and a decisive move above this level could potentially pave the way toward Rs 136,390.