Gold was trading with robust gains during noon trade in the domestic market on Friday as the Bank of England’s (BOE) decision to keep its benchmark rate at a record low of 0.5% bolstered the bullion’s appeal as a store of value.
However, the primary focus today is on the US jobs data and a good number for July may make it almost certain that the Fed will hike interest rates in September, bad news for Gold which loses out against competing assets in a rising interest rate scenario, given that the yellow metal doesn’t earn any interest.
Analysts expect the US economy to have added 222,000 jobs in July following 223,000 in June. Another point of interest would be whether wages have picked up or not. Domestic wage growth stood stagnant in June. Domestic payrolls rose 185,000 last month, compared to June’s 237,000 increase, ADP said on Wednesday.
At the MCX, Gold futures for August 2015 contract is trading at Rs 24,897 per 10 gram, up by 0.44% after starting at Rs 24,767, against the last closing price of Rs 24,788. It touched the intra-day high of Rs 24,943. (At 12:43 PM).