Gold price fell by Rs 400

According to All India Bullion Association, the price of gold of 99.9 percent purity in the capital Delhi fell by Rs 400 to Rs 1,60,900 per 10 grams. Earlier on Wednesday it had closed at Rs 1,61,300. However, there was no change in silver prices and it remained stable at Rs 2,68,500 per kg.

Data from America spoiled the game

Market experts say that the main reason for this fall in gold is the employment figures from America. According to Saumil Gandhi, Commodity Analyst at HDFC Securities, expectations of an early interest rate cut by the Federal Reserve have diminished after better than expected labor data in the US.

The American ‘Non-Farm Payroll Report’ released for January states that 1.3 lakh new jobs have been added to the economy there and the unemployment rate has come down to 4.3 percent. This strong economic data has steered investors away from gold.

Biggest rise in silver in 46 years

A report by Kotak Securities has presented a worrying picture regarding silver. According to the report, silver has fallen by almost one-third from its record level of January 29. Silver price volatility has reached its highest level since 1980 due to low liquidity and aggressive positioning in the market.

In the global market too, spot gold fell 0.43% to $ 5,062.46 an ounce, while silver fell by nearly 2% to trade at $ 82.84 an ounce.

What will happen next?

Analysts believe that even though gold is under pressure due to delay in interest rates, geopolitical tensions and continuous purchases by central banks will support it at lower levels. Now the market’s eyes are on America’s unemployment claims and Consumer Price Index (CPI) data coming on Friday, which will decide the future direction.