Gold Rush Again: What's Driving the Bullion Market Crazy Ahead of US Jobs Data?

After the last week of June 2025, which saw a constant decline, gold prices rebounded on July 1 owing to a declining US dollar and mounting concerns over US trade tariffs. Investors resorted to the yellow metal as key US economic and policy data is about to be made public. Spot gold price grew 0.6% to $3,322.55 per ounce in early Asian trade, whereas US gold futures surged 0.8% to $3,334.80 per ounce.

The 24 Karat gold price in India stands at INR 98,400 per 10 grams, whereas the rate for 22 Karat for 10 grams is INR 90,200. !8-Karat gold price, on the other hand, is INR 73,800 per 10 grams.

US Dollar Index Tumbles to a 43-month Low

The US dollar index shrank 0.2%, falling to a 43-month low, making gold cheaper for other currency holders, leading to a demand uptick worldwide.

As US rate cut expectations deepen and the dollar falls, gold prices in India have firmed up, according to Rahul Kalantri, VP Commodities, Mehta Equities Ltd. Short covering and bargain buying also supported the gold price to rebound from last weeks fall, he added.

Gold Prices in India Up Owing to Political and Policy Uncertainty in the US

The July 9 deadline for new US tariffs has jittered the market. US President Donald Trump has hinted at sharp tariff increases unless theres a consensus on trade deals. He has also urged the Federal Reserve to cut interest rates to push economic growth.

Aggressive Rate Cuts by Fed May Drive Gold Prices Higher

Gold prices in India seem to have stabilized and are increasing gradually, according to Aksha Kamboj, VP, India Bullion and Jewellers Association. Deeper rate cut expectations during the upcoming Federal Reserve Meeting and lingering geopolitical tensions are driving positive sentiment for gold.

Key Gold Price Levels

Gold prices in India face resistance at INR 96,480-96,750 per 10 grams and support at INR 95,810-95,580 per 10 grams. Global gold prices face resistance levels at $3,335-$3,355 per ounce.

US Job Data Release is What Everyone‘s Waiting for

US jobs data, expected to be out on July 3, has grabbed everyone’s attention. The data findings would influence the policy direction during the impending US Fed meeting. Any economic weakness indicator may make the case for interest rate cuts stronger, driving gold prices higher. Analysts expect gold prices to continue going upward in the near term, owing to strong domestic demand and massive buying of the yellow metal by central banks worldwide.

Summing Up

The gold price rise on July 1, 2025, is a testament to the renewed belief among investors in the yellow metal despite some corrections. The weakening US dollar and the uncertainty lurking around US tariffs are keeping the bullion market stronger.

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