Spot gold up tracking gains in futures amid absence of key US economic data
This story was originally published at 15:20 IST on 3 February 2026
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MUMBAI – Spot gold prices rose Tuesday, tracking futures contracts on the Multi Commodity Exchange of India and the COMEX. Prices rose as market participants braced for lack of US economic data this week due to a partial US government shutdown which increased the safe-haven demand for gold prices, which is vital for investors to gauge the rate-cut trajectory of the US Federal Reserve.
On Monday, the US Bureau of Labor Statistics said the closely watched employment report for January will not be released this Friday because of a partial shutdown of the federal government, Reuters reported. The US government partially shut down Saturday after the US Congress failed to approve a deal to keep the labor department, among other operations, funded. "Additionally, hopes for aggressive interest rate cut by US Federal Reserve started fading after US President Donald Trump named former Fed Governor Kevin Warsh as his choice to succeed Jerome Powell as Fed Chair," ICICI Direct said.
Spot gold rebounded after prices fell sharply in the last two days due to profit booking after a sharp rally. Prices also fell, tracking gold futures as the Chicago Mercantile Exchange increased margins for the precious metals. Prices also declined following President Trump's nomination of Kevin Warsh to succeed Powell as the next Chair of the US Federal Reserve when Powell's term ends in May.
In the Mumbai spot market, the price of gold of 99.9% purity was INR 150,708 per 10 grams, higher than INR 142,270 per 10 grams Monday, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association. Dealers are not charging any premium on gold prices, Jain said.
However, the gains in gold prices could be limited due to easing geopolitical tensions between the US and Iran. Iranian President Masoud Pezeshkian announced Tuesday that he has instructed diplomats to seek talks with the US, as tensions around the threat of a military confrontation appears to ease, Aljazeera reported. The increased margins for the gold futures contracts by the Chicago Mercantile Exchange could also weigh on gold prices. End
Reported by Reshma Ravi
Edited by Tanima Banerjee
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