US Employment Growth Weakens, Indian Gold Prices Quoted At Rs. 45,940, On Oct 9

Today, on October 9, Indian gold prices have remained the same as yesterday's quotations, as the US employment data of September got published. Today, 22 carat gold rates are quoted at Rs. 45,940/10 grams and 24 carat gold rates are quoted at Rs. 46,940/10 grams. The Comex gold future dropped by 0.10% and was quoted at $1757, while the spot gold prices hiked by 0.10% and were quoted at $1758/oz till last traded. On the other hand, the US dollar index in the spot market stayed at 94.12 till the last traded. In India, the Mumbai MCX gold in October future market is closed today on Saturday. However, the future gained by 0.40% yesterday till last traded yesterday and was quoted at Rs. 47,013/10 grams, which was an immediate impact of a weak US employment data of September.

The US has published its employment growth data which dropped to the slowest pace of this year in September. The country started to recover fast after the shock of the second-wave the emerge of the Delta variant of the Coronavirus led to a shortage of workers. This impacted the manufacturing sector as well as the employment scenario, the inflation rate is also at a concerning position in the country now. The US created around 194,000 jobs in September which is the lowest gain since December 2020. The figure is also down from 366,000 jobs added in August, the Labor Department confirmed.

After the immediate publication of the US employment data of September, the gold rates in the international markets gained immediately, crossed the $1780/oz level. Investors anticipated that as the employment data was quite weak in the month, this will influence the US Fed to delay the tapering timeline and gold rates gained globally. However, the pace of the gain did not last for very long. As the US treasury yield hiked, the gold rates again dropped to the earlier level below $1760/oz today.

Gold rates in different Indian cities are quoted differently, daily. Today's gold rates in major Indian cities follow:

Everett Millman of Gainesville Coins precious metals expert told Kitco regarding the US Fed monetary policy anticipation and its impact on gold, "Powell has painted himself into a corner with those comments. It seems unlikely that tapering could come in November, given the jobs numbers. They also can't raise interest rates as soon as they want to if data continues to be bad. If the Fed can't keep its timeline and it is forced to continue supporting the markets longer than expected, that doesn't indicate a strong economy and will drive safe-haven demand for gold."