Gold prices fell sharply in India, tracking a similar decline in global markets. On MCX, February gold futures fell over 1% or ₹400 to ₹37,685 per 10 gram on Friday. Silver took a bigger hit. On MCX, silver futures fell nearly 2.5% or ₹1,074 to 43,536 per kg. Gold prices tumbled in global markets took a hit after strong jobs data eased concerns about US economy. Employers added 266,000 jobs last month, the most since January. This spurred a risk-on rally on Wall Street.
On the Comex, gold futures fell 1.2% to settle at $1,465 an ounce on Friday. The dollar also rose after data showed US jobs data took the spotlight off the US-China trade talks.
Gold traders will now be focusing on the outcome of US Federal Reserve's meeting, scheduled next week. The US central bank is expected to keep interest rates steady after three cuts earlier in the year.
"Also, weighing on gold price is a pause in monetary easing by major central banks. Fed has maintained that it may keep interest rate unchanged unless US economic outlook worsens significantly," Kotak Securities said in a note.
Analysts said the jobs report showed underlying strength in the US economy. The focus will also remain on developments related to US and China trade talks. A new round of U.S. tariffs covering about $156 billion of Chinese imports is set to kick in just over a week on December 15.
Gold ETF investors have also moved to sidelines with holdings of SPDR ETF remaining flat in recent days. "Gold may continue to witness mixed trade as market players react to trade related statements from US and China however the general bias may be on the downside owing to weaker investor buying interest and stall in monetary easing by major central banks," Kotak Securities said in a note. (With Agency Inputs)