Gold rises in Delhi, Mumbai; spot up 0.4% on Middle East hopes

Gold's weekly gain of more than 5% came as the dollar softened and crude oil fell, reducing inflation hedging pressure. Lower oil prices tend to support gold because they ease the need for aggressive rate hikes. The nonfarm payrolls report due later Friday will test whether the rally holds. A strong number would push yields higher and cap gold; a weak print could extend the move toward $4,300.

For Indian buyers, the domestic premium over international prices has narrowed slightly. The MCX gold futures contract was at ₹149,490 per 10 grams, roughly in line with retail rates after accounting for GST and making charges. That suggests physical demand is steady but not surging ahead of the festive season.

The broader trend remains tied to U.S. rate expectations. Gold's rally this week was built on bets that the Federal Reserve will cut rates sooner than previously priced. If payrolls disappoint, those bets will strengthen. If they beat, the metal's recent highs may prove short-lived.

For more on how global factors drive domestic prices, see our commodities analysis.