A solid US jobs report and figures from China send gold hurtling towards a weekly loss, while silver falls 6%.

A weekly decline is anticipated for gold prices, and they are being trailed by silver, which fell 5.8% to $29.50 an ounce on June 7.

A stronger-than-expected US jobs report dashed hopes for US interest rate cuts this year, while data indicating that China, the country’s largest consumer, postponed buying metal in May contributed to the pessimistic outlook for gold prices, which is poised for another weekly drop. Due to lowered expectations of a rate cut by the US central bank, the yellow metal has been falling for the past three weeks.

Spot gold fell 2.7% to an ounce for $2,312.20. US gold futures fell $2,330.10, or 2.5 percent. Sucked into the slipstream, palladium lost 2.8% to $904.25, platinum dropped almost 3% to $972.10, and silver lost 5.8% to $29.50 per ounce. Regarding domestic pricing, gold futures on the multi-commodity market (MCX) recently saw a 0.2% decrease, closing at ₹71,341 per 10 grammes.

Gold prices prolong losses: What is causing the yellow metal to hurt?Analysts stated that they will find out today if gold can withstand the combined impact of both a positive job report and a halt in Chinese purchases. According to a Labour Department data, nonfarm payrolls (NFP) increased by 272,000 jobs in May compared to an expected 185,000 increase.Additionally, the data fueled a dollar rise that increased the cost of bullion for buyers from outside.

After the release of the NFP data, traders reduced their bets to price in 38 basis points (bps) of cuts by the end of December, down from 48 bps previously. It is more likely that the first cut will occur in November rather than September.Analysts say that because the US economy is showing signs of strength and the US Fed may postpone its first cut, the gold market and other commodities are experiencing some liquidation. The potential cost of owning non-yielding bullion increases with higher rates.

Along with data suggesting China, the world’s largest customer, refrained from purchasing gold in May after 18 months of purchases, the jobs report contributed to the pessimistic outlook. Although the China news had a significant impact on the yellow metal, TD Securities analysts pointed out that “the pause in purchasing could just be a hint of athe light of the price increase, go back to a more cost-sensitive business.”

Where will the price of gold go?

Due to significant data events, gold prices saw significant fluctuation this week, ranging between ₹71,300 and ₹73,400 in the MCX. Lower nonfarm employment statistics earlier in the week helped Gold and raised hopes for a Fed rate decrease, according to Jateen Trivedi, VP Research Analyst – Commodities and Currency, LKP Securities.

But Friday’s big Nonfarm Payroll and Unemployment data releases will provide us a better idea of what to expect going forward. The possibility of a September rate drop will have a significant impact on Gold’s increase. According to Trivedi, there is currently significant support for Gold at ₹71,000–70,000, and resistance at ₹73,500.

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As gold prices grow closer to their goal, today’s forecast is for 10-06-2024.

From a technical standpoint: Gold is facing resistance around $2391-2405 and support at $2351-2335. Silver’s resistance is at $31.32-31.50, and its support is at $30.82–30.67. Support for gold in Indian rupees is at ₹72,880-72,650, while resistance is at ₹73,340-73,550. Rahul Kalantri, VP Commodities, Mehta Equities Ltd., says that resistance is at ₹94,470-95,150 and support is at ₹93,250-92,680 for silver.