The solid employment release elevated the U.S. dollar by 0.7% to reach its highest level since late October while simultaneously pushing up Treasury yields. In response, spot bullion settled lower at $4,074.36 per ounce after rebounding from an intra-day trough of $4,033.29. Outside of macroeconomic trading, physical consumer interest picked up in India as buyers capitalized on cheaper prices ahead of the Diwali festival.
Key points
CME FedWatch data indicated that traders raised the likelihood of a December rate increas…: CME FedWatch data indicated that traders raised the likelihood of a December rate increase to 81%.
Despite Friday's retreat, gold achieved a 5.2% weekly advance, marking its top weekly per…: Despite Friday's retreat, gold achieved a 5.2% weekly advance, marking its top weekly performance since August.
Indian retail buyers increased physical purchases ahead of Diwali following the metal's d…: Indian retail buyers increased physical purchases ahead of Diwali following the metal's drop toward recent lows.
Sources checked by our analysis pipeline: 1
Spot gold fell 0.3% to $4,074.36 per ounce by 01:54 p.m. ET (1854 GMT). The metal fell by more than 1% to hit a low of $4,033.29 earlier in the session.
Spot gold was up 5.2% for the week, on track for its best week since August.
US gold futures for December delivery settled 0.9% lower at $4,074.90.
The US dollar rose 0.7% to its highest level since October 29, making dollar-denominated gold more expensive for holders of other currencies, while benchmark 10-year Treasury yields also climbed.
"Gold gapped lower on a stellar employment report (that was) strong across the board, but is trying to claw back higher. This is a litmus test for this week's rally," independent metals trader Tai Wong said.
US nonfarm payrolls increased more than expected in October and the unemployment rate fell to 4.1%, suggesting the labor market remained resilient and giving the Federal Reserve more scope to focus on inflation stemming from the Middle East conflict.
Traders currently see an 81% chance that the Fed will raise rates in December, compared with 72.8% before…
Record earnings from the copper division and operational recovery at Novelis propelled Hindalco Industries to strong second-quarter financial growth. While elevated domestic coal prices threaten to temporarily increase domestic aluminium production costs in the coming quarter, broader market sentiment remains reinforced by robust earnings diversification away from London Metal Exchange swings.
Market participants entering the auspicious Samvat 2083 session face a landscape defined by thin liquidity and technical resistance near recent market highs. Analysts advise against placing aggressive bets, instead recommending a selective, stock-specific approach that capitalizes on low benchmark valuations while sidestepping overheated market segments. Investors must carefully navigate key technical boundaries alongside external macroeconomic headwinds like crude oil fluctuations.
Strong foreign institutional inflows and lower crude oil prices sparked a massive weekly rebound across Indian equity benchmarks, pushing the Nifty 50 past key technical milestones. Market participants are positioning for additional momentum during the upcoming festive session as major indices flash technical breakouts. However, analysts warn that elevated momentum indicators could trigger near-term consolidation following the sharp advance.