Gold prices fall as US payroll data reduces rate-cut hopes
12 Feb 2026

Gold prices have witnessed a decline after the US non-farm payroll data for January came out stronger than expected.

The data has reduced hopes that a slowdown in employment would lead the Federal Reserve to cut interest rates further.

On February 12, gold opened at $5,028 an ounce, representing a decline of around 0.3% from its previous close.

Silver prices have also witnessed a marginal decline today, falling 1.05% to $83 per ounce.

What is the status of gold in India?
Market stability

In India, the domestic price of gold on MCX was ₹1,57,980 per 10 grams of 24-carat purity, down 0.5% from its previous close.

Gold prices across major Indian cities remained remarkably consistent, with only minor variations due to local taxes, jeweler margins, and logistics costs.

Jateen Trivedi from LKP Securities suggested that immediate support for gold on MCX is near ₹1,55,000 while resistance lies in the ₹1,60,000-₹1,62,000 range.

Investors are increasingly turning to gold ETFs
Investment trends

Despite the recent fluctuations in gold prices, investors are increasingly turning to precious metals.

According to AMFI data, gold exchange-traded funds (ETFs) saw record inflows of around ₹24,000 crore in January alone. For FY26, cumulative inflows into gold ETFs stood at around ₹61,000 crore.

This trend indicates a growing preference for investing in gold amid market uncertainties.

Central bank buying heavily influences gold prices
Market influence

Navneet Damani from Motilal Oswal Financial Services highlighted that central bank buying heavily influences gold prices.

He said, "We're seeing 800-1000 tons a year, led by China and other emerging markets."

These strategic decisions about reserves and de-dollarization aren't influenced by day-to-day rate moves.

Reports indicate that central banks' net gold buying totaled 863 tons after record purchases between 2022 and 2024 amid a strong rally in the price of this precious metal.