Gold commenced Thursday’s session on divergent trajectories, indicative of a blend of technical influences and overarching global macroeconomic factors. Gold February futures experienced a decline of Rs 324, trading at Rs 1,37,685 per 10 grams, whereas silver March contracts saw an increase of Rs 500, currently positioned at Rs 2,51,105 per kg on the Multi Commodity Exchange. The recent shift comes after a tumultuous week for bullion, as US labor data and the strength of the dollar exerted downward pressure on prices.
Gold and silver prices concluded Wednesday’s session on a subdued note in both domestic and global markets, influenced by robust U.S. economic data and a recovery in the dollar. On the Multi Commodity Exchange, gold February futures concluded at Rs 1,38,009 per 10 grams, reflecting a decrease of 0.7%. In contrast, silver March futures experienced a more pronounced drop, finishing at Rs 2,50,605 per kg, down 3.17%.
The precious metals faced downward pressure following the unexpected increase of 41,000 in the U.S. ADP non-farm employment data, indicating a robust labor market. In parallel, the U.S. Dollar Index regained strength and was last seen hovering near 98.69, up 0.01 points or 0.01%, capping gains for gold and silver. Nevertheless, some data did provide support. The JOLTS report indicated a slight decline in new job openings relative to expectations, providing some support for gold and silver at reduced price levels, according to Manoj Kumar Jain of Prithvifinmart Commodity Research.
Furthermore, persistent purchases by central banks have contributed to establishing a support level. The People’s Bank of China has continued its gold purchasing activities for the 14th consecutive month, amassing 42 metric tons since November 2024. This move aligns with a wider strategy aimed at de-dollarization in the context of global uncertainty. “We are witnessing elevated price swings in both metals,” stated Jain. “But technically, silver is expected to hold its support near 65 per troy ounce, while gold may find stability around 4,240 per troy ounce on a closing basis.”