Market Performance
Gold price today slipped in early trade as investors locked in profits after the recent run-up. The move came against the backdrop of a firmer US dollar and a rebound in US bond yields, both of which typically weigh on precious metals.
On the domestic futures exchange, MCX gold February contracts were trading 0.25% lower at ₹1,37,663 per 10 grams around 9:25 am. Silver followed the same path, with MCX silver March futures down 0.33% at ₹2,49,779 per kg.
The tone across the precious metals market remained cautious. After a sharp rally earlier, traders appeared comfortable trimming positions, leading to mild but broad-based selling pressure.
Main News: Why Gold Prices Are Falling Today?
The slide in gold price today is largely driven by profit booking, not panic selling. Over the past few sessions, prices had moved up steadily, and the current dip reflects traders cashing out gains.
Two global factors played a key role:
- US dollar near a two-week high
- 10-year US Treasury yield rebounding from recent lows
When the dollar strengthens, gold becomes costlier for buyers outside the US, which usually dampens demand. At the same time, higher bond yields make interest-bearing assets more attractive, reducing the appeal of holding gold. This combination put clear pressure on gold prices in early trade.
In the previous session, the trend was already visible. February gold futures fell 0.7%, while silver futures declined over 3%, showing that selling pressure was sharper in silver than gold.
US Data Keeps Gold Losses in Check
Despite the decline, gold price today did not see a sharp breakdown. That’s because weak US labour market data helped limit the downside.
In November, US job openings fell to a 14-month low. Official data showed:
- Job openings declined by 303,000
- Total openings stood at 7.146 million by November-end
- October’s figure was revised down to 7.449 million
- This marked the lowest level since September 2024
Weak employment data usually strengthens expectations of interest rate cuts, which tends to support gold prices. This balancing act between profit booking and rate-cut expectations kept gold’s fall relatively measured.
Focus Shifts to US Payroll Data
The spotlight has now shifted to the US non-farm payrolls data, due for release on Friday. This data point is critical as it could offer clearer signals on the US Federal Reserve’s interest rate path.
At present, markets are factoring in two US Fed rate cuts this year. Any confirmation or deviation from this outlook could influence short-term moves in gold price today and in the coming sessions.
Summary: What’s Driving Gold Price Today?
Gold price today moved lower due to a mix of global cues rather than domestic factors. The broader story remains one of balance, not breakdown.
Key takeaways at a glance:
- Gold futures down 0.25% at ₹1,37,663 per 10 grams
- Silver futures down 0.33% at ₹2,49,779 per kg
- Profit booking after recent gains triggered selling
- US dollar near a two-week high added pressure
- Bond yields rebounded, raising holding costs for gold
- Weak US job data helped cap losses
- Markets eye US payroll data for next directional cue
For now, gold price today reflects a pause rather than a reversal — a market catching its breath as global signals continue to evolve.
Source: Livemint
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