Gold extends profit-taking decline ahead of US NFP, Powell

Finance

Gold extends profit-taking decline ahead of US NFP, Powell

After the overnight corrective pullback in Comex Gold from all-time highs, Gold price in India also follows suit on Friday.

Traders resort to taking profits off the table after the record rally backed by US President Donald Trump‘s tariff war, bracing for the critical US Nonfarm Payrolls (NFP) report and Fed Chair Jerome Powell’s speech later in the day.

When writing, Gold price is seen trending lower at 8,495.89 Indian Rupees (INR) per gram, following Thursdays close of INR 8,529.00, according to data compiled by FXStreet.

At the same time, the price for Gold declines to INR 99,094.37 per tola from INR 99,480.59 per tola a day seen on Thursday.

Global Market Movers: Gold price catches a breather ahead of key US event risks

• Gold price attracts some sellers for the second successive day on Friday, though a combination of factors should continue to act as a tailwind and limit any meaningful corrective slide from the record high.
• US President Donald Trump rattled global financial markets late Wednesday and unveiled reciprocal tariffs of at least 10% on all imported goods, which could negatively impact the world economy.
• Traders ramped up expectations that the Federal Reserve will resume its rate-cutting cycle in June and lower borrowing costs four times by the year-end as Trumps trade policies reignite US recession fears.
• The yield in the benchmark 10-year US government bond slides below 4.0% for the first time in six months and fails to assist the US Dollar to build on the overnight bounce from a multi-month trough.
• Meanwhile, data released on Thursday showed that economic activity in the US services sector eased momentum in March, with the ISM Services PMI falling to 50.8 from 53.5 in February and missing estimates.
• Separately, the US Department of Labor (DOL) reported US citizens filing new applications for unemployment insurance ticked lower to 219K for the week ending March 29 from the 225K previous.
• The aforementioned fundamental backdrop favors the XAU/USD bulls. Hence, the modest downtick could be attributed to some repositioning trade ahead of the release of the monthly US employment details.
• The popularly known US Nonfarm Payrolls (NFP) report is expected to show that the US economy added 135K new jobs in March, though the Unemployment Rate is anticipated to hold steady at 4.1%.

FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.