In the global market gold witnessed no major movements as the traders are waiting for the US job data which will be released later.

However, even as the world is awaiting the US job and other economic data for making their further movements in the market as US is the biggest influencing factor in almost all commodity markets, India and China are slowly seizing the deciding power in bullion market.

Since India is the largest consumer of the metal and China has emerged as the second largest economy in the world beating Japan, bullion market watchers are giving more importance to India and China to decide their future course of action.

Gold traded flat on Friday, as institutional investors offset weak physical demand. The August US non-farm payroll figures are expected to show a loss of 100,000 jobs. This may dampen recovery hopes raised by this week's positive data and spur safe-haven demand in gold.

Spot gold was at $1,251.25 compared with $1,250.74 late in New York on Thursday. Silver was at $19.55 from $19.58.

An emerging bullion market in China, and a massive under-the-radar bullion stockpile in India, may require that analysts redefine the world's bullion supply and demand dynamics.

With a vast, domestic stockpile of bullion, Indians can trade in gold and silver in a way that can't be done in the West, because the premiums charged by Indian bullion dealers are only a tiny fraction of the hefty premiums which most Western retail buyers must pay.

Compared to the precious metals markets of other nations, India has a huge scrap-market. However, when stacked-up against the vast Indian stockpiles of gold (and silver), this scrap market suddenly looks much, much smaller.

India is by far the world's largest importer of gold. As mentioned previously, Indian gold-buyers are also extremely sensitive to price.

Gold and silver prices had rallied to hit fresh all-time highs at the bullion market in Mumbai this week on hectic buying by stockists and speculators driven by strong trend in overseas markets.

Fresh industrial buying support, along with heavy speculative build-up, led the white metal to cross the Rs 31,000-level. The sudden spurt was mainly attributed to surging global valuations, where the precio us metals hit multi-month highs on concerns over the growth momentum of US economy.

Besides the international move, brisk buying from jewellers ahead of festive season and investment demand also gave a fillip to the rally. Gold has recently outperformed silver in value terms and seems to be catching up with the white medal. Standard gold (99.5 purity) shot up by Rs 195 per ten grams to close at Rs 19,140. Pure gold (99.9 purity) strengthened by Rs 200 per ten grams to finish at Rs 19,230. Silver ready (.999 fineness) zoomed by a hefty Rs 545 per kilo to end at Rs 31,300.

Japan China India Gold