Gold Prices Rally On Weak US Jobs Data; Prices To Head Further North

On Monday (April 6, 2020), gold prices rallied after disappointing US non-farm payrolls data pointed to looming economic crisis due to coronavirus outbreak. On Friday, report of the US Labor Department confirmed that the economy lost close to 0.7 million jobs in March as stringent measures hurting business sentiment were in place for combating Covid 19 infection. Nonetheless, strength in the dollar against a basket of key currencies, capped further gains in the price of precious yellow metal.

Gold Prices Rally On Weak US Jobs Data; Prices To Head Further North

The dollar surged to an over 1-week high against major currencies, rendering the precious metal expensive in other currencies.

Global Gold Price

Spot gold surged 0.2% to 1,618.90/ounce by 0053 GMT.US gold future were however static at $1,645.90.

Domestic Gold rates

The bullion market is shut for trading today on account of Mahavir Jayanti. Meanwhile, spot gold markets in India remained shut on Friday as well due to country wide lockdown.
In the futures market on the MCX, gold on April 3, 2020 rallied as much as 1.1% or Rs. 482 to Rs. 43,722 per 10 gm.

On March 9, 2020, spot gold price climbed close to Rs. 45000 per 10 gm on the MCX tracking gains in the international spot gold which climbed to 7-year high price on mounting coronavirus fears.

Buying of gold for investments was near negligible amid lockdown, however, MCX gold futures continued to find support amid falling equity markets and a weaker rupee, Choice Broking ED told leading business portal.

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