Gold prices remained stable on Wednesday (December 4) as markets awaited US jobs data and Federal Reserve Chair Jerome Powell’s speech for clues on interest rate trends. Spot gold held firm at $2,644.42 per ounce, while US gold futures dipped slightly by 0.1% to $2,666.40 per ounce.
In India, gold prices rose.
The cost of 24-carat gold increased by ₹450 to ₹7,796.3 per gram, while 22-carat gold prices rose by ₹420 to ₹7,148.3 per gram.
Key factors influencing prices
Interest rate outlook
Markets expect a shallow rate cut cycle in 2025, according to Kelvin Wong, Senior Market Analyst at OANDA.
The CME Group’s FedWatch Tool indicates a 73% probability of a 25-basis-point rate cut this month, with further reductions expected by the end of 2025.
US employment data
Investors await the US ADP employment report and Friday’s payrolls report, which could impact Federal Reserve decisions.
A strong jobs report might slow the pace of rate cuts, potentially pressuring gold prices.
Global geopolitical concerns
Political uncertainty in South Korea and the resurgence of civil conflict in Syria have supported gold’s safe-haven appeal.
Expert outlook
Kelvin Wong noted that while short-term movements remain subdued, the long-term bullish trend for gold persists due to rising trade tensions and potential U.S. budget deficits.
Renisha Chainani, Head of Research at Augmont Gold For All, highlighted that geopolitical tensions and non-yielding bullion’s strength in a low-interest-rate environment continue to support prices.
Future trends
Gold prices are expected to remain rangebound between $2,600 per ounce (₹75,000 per 10 grams) and $2,200 per ounce (₹77,600 per 10 grams) over the next few days.
Analysts anticipate moderate volatility around the release of the US employment data on Friday (December 6), with the unemployment rate likely to rise slightly to 4.2% and non-farm payrolls to show improvement.
Investment strategy
Experts suggest cautious optimism for gold investors. Geopolitical tensions and macroeconomic uncertainties could bolster gold’s long-term appeal, while short-term fluctuations may provide buying opportunities.
Content retrieved from: https://www.cnbctv18.com/personal-finance/gold-prices-rates-india-fall-rise-us-fed-jobs-data-buying-investment-19519028.htm.
