Gold rates rise in India on global cues; investors eye US jobs data for direction

Gold prices in India rose on Thursday (June 5), tracking global cues as investors responded to weaker US economic data and persistent global uncertainty. According to GoodReturns, 24 karat gold climbed ₹430 to ₹99,600 per 10 grams, while 22 karat gold rose ₹400 to ₹91,300 per 10 grams.

In global markets, spot gold held steady at $3,372.82 an ounce, while US gold futures dipped 0.1% to $3,395.50 an ounce.

Gold stayed firm as investors waited for Friday’s (June 6's) US nonfarm payrolls data. A disappointing jobs report could strengthen the case for US rate cuts, which typically boost demand for gold.

“The bullion market is cautiously optimistic,” said Aksha Kamboj, Vice President, India Bullion and Jewellers Association. “Uncertainty around US-China trade ties, EU tariffs, and potential Middle East tensions continue to support gold at higher levels. But strong US jobs data could prompt profit booking.”

Markets reacted to signs of a slowdown in the US economy.

The US services sector shrank in May for the first time in nearly a year, while private hiring hit a two-year low, according to the ADP Employment Report.

The Institute for Supply Management also reported weak business activity.

Amid these signs, US President Donald Trump renewed pressure on the Federal Reserve to cut interest rates, citing rising costs and trade tensions.

He also doubled tariffs on steel and aluminum imports and called Chinese President Xi Jinping "extremely hard to deal with" ahead of a high-level call.

Matt Simpson, senior analyst at City Index, said, “Gold is supported, yet hesitant to break out higher. Traders are waiting for more clarity from Friday’s jobs report.”

Technical outlook

Analysts at Augmont Bullion noted that gold has broken through key resistance of $3,375  per ounce (~₹96,400 per 10 grams). If momentum holds, prices could move towards $3,450 per ounce (~₹99,000 per 10 grams).

In India, gold remains supported above ₹95,000 per 10 grams, with resistance around ₹99,000 per 10 grams.

Investment perspective

Gold remains a preferred hedge amid rising geopolitical risks and a potential slowdown in US growth. However, any strong economic data could shift investor sentiment back toward riskier assets like equities.

With gold prices near record highs, investors should stay cautious and monitor key economic indicators closely, experts say.

-With Reuters inputs