Gold prices concluded the trading session at Rs 153,099, reflecting an increase of 0.84%. This uptick was bolstered by disappointing U.S. jobs data, which tempered anticipations regarding imminent rate hikes by the Federal Reserve. The U.S. economy unexpectedly shed jobs in July, while downward revisions to the previous two months further weakened the labour market outlook. Markets currently assign a 44% likelihood to a rate hike in September, a decrease from the previous 57% prior to the jobs report.
Investors are now looking ahead to the upcoming U.S. CPI and PPI data for additional insights into monetary policy direction. Physical demand exhibited a mixed performance, as Perth Mint gold sales increased by 3.8% month-on-month, reaching 30,871 ounces in July, and demonstrating a year-on-year growth of 41%. COMEX speculative net-long positions rose by 12,070 contracts to reach 132,398 contracts in the week ending August 4, reflecting robust bullish sentiment in the context of inflation uncertainty, geopolitical risks, and ongoing central-bank purchases.
However, Indian gold discounts expanded to $47 an ounce as high prices deterred retail purchases, while Indian net gold imports decreased by 23% year-on-year to 98.1 tonnes in the June quarter. Global gold demand held firm at 1,268.9 tonnes in the second quarter of 2026, bolstered by a significant increase in central-bank acquisitions, which surged fivefold to reach 289 tonnes, even in the face of 45 tonnes of outflows from ETFs. London vault holdings rose by 0.77% month-on-month, reaching a total of 9,464 tonnes.
Technically, the market continues to experience short covering, as evidenced by a 0.66% decline in open interest to 10,367 contracts, alongside a price increase of Rs 1,279. Gold is currently finding support at Rs 151,975, and a breach below this level could potentially expose Rs 150,850. On the upside, resistance is positioned at Rs 153,710, and a sustained move above this level could catalyse additional gains toward Rs 154,320.
