Gold and silver prices traded lower on the Multi Commodity Exchange on Monday, September 7, after both precious metals gained over the previous week. Gold futures slipped towards Rs 1.52 lakh per 10 grams, while silver fell to Rs 2.36 lakh per kg during the session.
The latest weakness comes as stronger-than-expected US jobs data has increased expectations of a possible Federal Reserve rate hike this month, putting pressure on non-yielding bullion. The markets are now awaiting US inflation data for further clues on the Fed's policy path.
Gold Price Today On MCX
MCX October gold futures were trading at Rs 1,52,339 per 10 grams at around 10.23 am, down 0.28% from the previous close of Rs 1,52,767.
The contract moved between Rs 1,52,225 and Rs 1,52,483 during the session.
Gold had ended the previous week at Rs 1,52,767. At the start of that week, the October contract had closed at Rs 1,51,729, gaining around Rs 1,038, or 0.7%, over the course of the past week before Monday's decline.
Spot gold was down 0.6% on Monday after falling 1% on Friday, as robust US employment data strengthened expectations of higher interest rates.
Also Read: Gold Holds Drop As US Jobs, Hormuz Strikes Boost Rate-Hike Case
Silver Rate Today On MCX
MCX December silver futures were trading at Rs 2,36,950 per kg, down Rs 708, or 0.3%, from the previous close of Rs 2,37,658.
Silver touched an intraday low of Rs 2,36,423 as of 10.18 am, while its day's high stood at Rs 2,37,496.
Silver had closed the previous week at Rs 2,37,658, compared with Rs 2,35,441 at the beginning of the week. It therefore gained around Rs 2,217, or 0.9%, during the week before Monday's fall.
US Inflation Data In Focus
The pressure on precious metals follows a sharp acceleration in US job growth in August, while the unemployment rate held steady at 4.1%. Reuters reported that traders are pricing in a 58.4% chance of a Fed rate hike at the September 15-16 meeting.
The next major triggers are US PPI data on Thursday and CPI data on Friday. A stronger inflation reading could reinforce expectations of a Fed hike, lift yields and put further pressure on gold and silver.
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