Gold prices slipped more than 1% on Friday after a stronger-than-expected U.S. jobs report dampened hopes for imminent Federal Reserve rate cuts this year, while silver soared to its highest level since 2012. Gold is considered a hedge against inflation and geopolitical uncertainty. But higher rates reduce the appeal of bullion as it yields no interest.
Spot gold fell 1.1% to $3,316.13 an ounce, as of 02:28 p.m. ET (1828 GMT), but rose 0.8% for the week so far. U.S. gold futures settled 0.8% lower at $3,346.60. Back home, domestic gold futures is now trading three per cent lower from its all-time record high mark of ₹1-lakh achieved last month on the multi commodity exchange (MCX).
However, the surging prices of the yellow metal increasing the investment bet for traders over the safe-haven appeal. Gold is seen as an asset, not just for investment purposes, but also auspicious for Indian homes. According to analysts, India’s gold rally is a reflection of broader emerging market dynamics—currency pressures, inflation hedging, and rising geopolitical risks. For asset allocators, it’s a timely reminder that gold remains a critical buffer in uncertain times.
Amid the ongoing geopolitical scenario and rising demand of the yellow metal, gold owners also look for avenues for sell physical gold to encash the commodity and book profits. However nowadays, customers are finding it tougher to sell physical gold, because it is not easy and to get the prevailing price. Leading jewellers in India who take the precious metal usually deduct the margin on the price.