Gold prices dipped on Monday (January 13), impacted by a stronger-than-expected US jobs report that boosted the US dollar and reinforced the Federal Reserve’s cautious approach toward rate cuts.

Spot gold fell 0.2%, trading at $2,684.39 per ounce by 0530 GMT.

US gold futures declined by 0.1% to trade at $2,712 per ounce.

In India, 24K gold is priced at ₹79,630 per 10 grams, reflecting global trends.

The US nonfarm payrolls report released on Friday (January 10) indicated a resilient job market, supporting the Fed’s cautious stance on rate cuts. This kept the dollar strong, making gold, priced in US dollars, more expensive for foreign buyers.

Market focus is now on US inflation data due later this week and speeches by Fed officials. These will provide further insights into potential rate changes.

“Traders expect the Fed to hold rates this month, with only one rate cut anticipated in June,” said IG market strategist Yeap Jun Rong. He noted that weaker US data could weaken the dollar and boost gold prices.

Gold’s appeal as a hedge against inflation remains, though higher interest rates make it less attractive as a non-yielding asset.8889ol;=

“Gold showed its power, especially after the US NFP report indicated a tight labor market,” said Renisha Chainani, Head of Research at Augmont.

Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL), pointed to continued central bank buying as a key factor. The Reserve Bank of India added 8 tons to its reserves in November 2024, with its year-to-date purchases reaching 73 tons.

In India, gold imports were lower than expected in November, with the government reducing its import projection by $5 billion (56 tons). This change is partly due to a reduction in import levies, which boosted demand for gold, especially during the wedding and holiday seasons.