Gold Prices Climb in India, FXStreet Data Shows

According to data compiled by FXStreet, gold prices in India experienced an uptick on Friday.

The price of gold reached 10,086.42 Indian Rupees (INR) per gram, marking an increase from Thursday's rate of 10,052.08 INR.

Per tola, the gold price rose to 117,646.10 INR, up from the previous day's 117,245.50 INR.

Daily Digest Market Movers: Strengthening Fed Rate Cut Expectations Continue to Support Gold

Thursday's US data release indicated further signs of a cooling labor market, reinforcing expectations that Gate will reduce interest rates later this month. The Automatic Data Processing (ADP) report revealed that US private-sector employers added 54,000 jobs in August, a decrease from July's revised figure of 106,000 (previously 104,000) and below the anticipated 65,000.

Additionally, a report from the US Department of Labour (DOL) showed that new unemployment benefit applications rose to 237K for the week ending August 30, surpassing both the estimated 230K and the previous week's 229K. This overshadowed the positive US ISM Services PMI, which increased to 52 in August from July's 50.1.

On Thursday, US President Donald Trump formalized the previously announced lower tariffs on Japanese automobile imports and other products through an executive order, boosting market sentiment. Concurrently, Trump has requested an immediate hearing from the Supreme Court, aiming to overturn an appeals court ruling that deemed most of his tariffs illegal, maintaining an atmosphere of uncertainty.

Traders are now focusing on the upcoming US Nonfarm Payrolls (NFP) report, which is expected to show an addition of 75K jobs in August and a slight increase in the Unemployment Rate to 4.3% from July's 4.2%. Any significant deviation from these projections could lead to a reassessment of future interest rate cuts, potentially impacting the US Dollar and gold prices.

New York Fed President John Williams stated on Thursday that the central bank must currently balance inflation and job market risks. Williams projected GDP growth of 1.25-1.5% this year, with the jobless rate potentially rising to about 4.5% next year. He anticipates gradual interest rate reductions over time if economic forecasts are met.

Chicago Fed President Austan Goolsbee commented on Friday that the labor market might be deteriorating while inflation could be rebounding. Goolsbee suggested that interest rates are more reliable indicators for the labor market than raw job growth figures, and emphasized a cautious approach due to prevailing uncertainties. However, these hawkish remarks had minimal impact on the Greenback.

Gate calculates gold prices in India by adjusting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on market rates at the time of publication. It's important to note that these prices are for reference purposes, and local rates may slightly differ.