The Fed is now expected to raise interest rates in June, after standing pat on monetary policy earlier in the week. June gold fell 0.1%, to close at $1,226.90 per ounce, the lowest in seven weeks. However, MCX Gold futures stayed afloat above Rs 28000 per 10 grams mark, ending flat on Rs 28070 per 10 grams.
The keenly watched Nonfarm Payrolls data showed that job growth in the US reaccelerated by much more than anticipated in the month of April after showing a notable slowdown in March. The non-farm payroll employment jumped by 211,000 jobs in April after rising by a downwardly revised 79,000 jobs in March.
The bigger than expected increase in employment was partly due to strength in the leisure and hospitality sector, which added 55,000 jobs. The health care and social assistance, financial activities, and mining sectors also saw notable job growth during the month. With the stronger than expected job growth, the unemployment rate edged down to 4.4% in April from 4.5% in March. This is near a decade low mark.
After hitting a seven-year low in 2016, Indian gold demand recovered in the January-March quarter with a 15% jump in volume terms from a year earlier — albeit aided by a favourable base — while demand for the precious metal dropped 18% globally, showed the latest data from the World Gold Council (WGC). The growth in Indian gold demand value is even more impressive — 18% in rupee and 19% in dollar terms. — Neal Bhai Reports