Economy

Gold Price Movement and Federal Reserve Impact

Monday, July 6, 2026
5 min read
Gold Price Movement and Federal Reserve Impact

Gold prices took a dip on Monday. It felt like profit booking was kicking in after things had been climbing last week. That whole move hinged on that softer-than-expected US jobs report.

Expectations about the Federal Reserve hiking rates got tempered. That’s what shifted the mood across the board.

Down in Mumbai, the local scene reflected this. 24K gold prices settled at Rs 1,46,620 per ten grams. The 22K variant dropped a bit more, hitting Rs 1,34,400. A small but noticeable correction there.

But look bigger picture internationally. Spot gold held steady at $4,174.66 per ounce as of that time, though it had managed to hit its peak since June 22 earlier in the day. Meanwhile, US gold futures for August delivery actually ticked up, climbing 1.5% to $4,186.70.

The dollar also saw a slight gain, about 0.1%. This made bullion cost more when measured in other currencies. It’s all tied together somehow. Bullion had already gained over two percent last week, finally snapping that four-week losing streak. That shift felt linked to the jobs data easing worries about inflation and those stubbornly high interest rates holding on.

The real friction point was the Fed. Data released on Thursday showed job growth slowing down sharply in June. Payroll gains for the preceding two months were revised lower. It pointed toward a cooling labour market. And that, naturally, made financial markets dial back their bets on an immediate rate hike from the Fed.

Traders are now looking at different odds. The CME FedWatch tool suggests only about a 55% chance of a rate increase in September. That’s down significantly from the higher estimates before all this data came out. And if rates stay lower, that generally favors gold. It's a non-yielding asset; lower borrowing costs tend to make it more appealing.

MCX futures also showed some movement. For instance, August 2026 delivery traded at Rs 1,47,266 per ten grams, dropping by just 0.08%. Silver followed suit, declining with MCX silver futures for July 2026 trading down 0.53% per kilogram. It’s a mixed picture, you know? Some things move one way, others drag along.

Written by Gree News Team — Senior Editorial Board

Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.

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