Gold prices on MCX slipped on Thursday, February 12, tracking weakness in global bullion markets after stronger-than-expected US jobs data dampened hopes of an early Federal Reserve rate cut.
In the international market, gold fell to around $5,050 per ounce, trimming gains from the previous session. The decline came after US employment data showed the largest increase in over a year in January, while the unemployment rate unexpectedly declined. The data signaled that the labour market remains resilient at the start of 2026.
Strong US data pushes rate cut expectations further
Following the robust jobs report, traders pushed back expectations for the next US Federal Reserve rate cut to July from June. Higher-for-longer interest rate expectations typically weigh on gold because the metal does not offer interest income. When rates stay elevated, the opportunity cost of holding gold increases.
As a result, global prices cooled, and MCX gold mirrored the decline.
What’s next for gold?
Investors are now closely watching Friday’s US consumer price index (CPI) data for further direction. Any signs of persistent inflation could reinforce the Fed’s cautious stance, potentially adding more short-term pressure on gold.
Despite Thursday’s fall, gold continues to trade above the key $5,000 per ounce level globally. The metal has recovered about half of the sharp 13% decline recorded in two sessions earlier this month. Ongoing central bank buying and geopolitical uncertainties are still offering underlying support.
For now, the pullback in MCX gold appears to be driven primarily by shifting US rate cut expectations rather than a structural change in trend.