Gold rate today: Yellow metal fluctuates ahead of US jobs data; silver slips nearly 1%

Gold prices rose on Thursday as the US dollar and Treasury yields eased, while market participants awaited new indications on the Federal Reserve's rate hike plans. Meanwhile, silver saw a marginal drop of -0.97% against the previous day's closing price.

After touching Rs 55,005 per 10 grams on the Multi Commodity Exchange (MCX) in the early hours of trade today, gold prices saw some profit-taking and were trading at Rs 54,997, down 0.39% from the previous close.

In the international markets, spot gold was up 0.1% at $1,806.28 per ounce, while US gold futures fell 0.2% to $1,812.50. Gold prices dropped 1% on Wednesday due to a stronger dollar and higher Treasury yields.

Investors are now looking ahead to US weekly initial jobless claims data due to be released later in the day. "Jobless data will be important. If it shows an increase in claims, then it should weaken dollar and support gold," said Ajay Kedia, director at Kedia Commodities told Reuters.

"In 2022, gold has already priced in the rate hikes. In 2023, gold will be well supported by geopolitical tensions, recession woes and central bank buying," added Kedia.

Gold has risen almost $200 from its more than two-year low in September, as investors anticipate that the US central bank will slow its pace of interest rate hikes, making the non-yielding asset more attractive.

Silver was last trading at Rs 69,127 on MCX, a marginal drop of -0.97% over the previous closing. On a weekly basis, silver has moved from Rs 68,470 on December 22 to a high of Rs 69,780 on December 27.

In other news, China, the top consumer of gold, eliminated its COVID-19 quarantine rule for inbound travellers, despite hospitals and funeral homes facing intense pressure from the increasing number of COVID-19 cases.

In November, contracts for the purchase of previously owned homes in the US fell far more than expected, declining for a sixth straight month. This is seen as a sign of the negative impact that the Fed's interest rate hikes are having on the housing market as the central bank tries to control inflation.