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Informist, Thursday, Jan. 8, 2026

By Reshma Ravi

MUMBAI – Spot gold prices opened lower Thursday as futures declined on profit booking after the recent rally, traders said. However, losses were limited as weaker-than-expected US jobs data reinforced expectations of a rate cut by the US Federal Reserve.

Spot gold of 99.9% purity was traded in the Mumbai market at INR 135,443 per 10 grams, down from INR 136,615 per 10 grams Wednesday, said Kumar Jain, spokesperson at the India Bullion and Jewellers Association.

At lower rates, physical demand for the yellow metal improved, with gold trading at premiums, traders said. The spot gold commanded a premium of INR 1,300, traders said. "Physical demand also improved, with gold trading at premiums in key hubs such as India and China for the first time in nearly two months as lower prices revived retail buying," Kedia Advisory said in a note.

The fall in gold prices was limited by the expectation of a Fed rate cut following weak US data. "...recent batch of economic data showed weakness in labor market conditions, strengthening bets of a Federal Reserve rate cut," ICICI Direct said in a report. US job openings also declined more than anticipated in November and hiring slowed, indicating that labour demand continued to decline due to economic uncertainty. The Bureau of Labor Statistics reported in its Job Openings and Labor Turnover Survey, or JOLTS report, on Wednesday that job openings, an indicator of labour demand, fell by 303,000 to 7.146 million by the end of November. Typically, gold performs well in a low-interest rate environment due to its non-interest-yielding nature.

The fall in prices is also likely to be limited due to safe-haven demand amid rising geopolitical tensions. "Additionally, demand for safe haven may continue to rise on escalating geopolitical tension. US has seized Russian-flagged vessel in North Atlantic linked to Venezuelan oil," ICICI Direct said in the report.  End

US$1 = INR 90.05

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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