- Safe haven assets fell globally as gold and silver prices dropped sharply on strong US jobs data
- Spot gold declined 5% to $1,353.35 an ounce, while silver fell over 7% to $18.78 an ounce
- August 2026 gold futures fell nearly 3% to Rs 1,55,154 per 10 grams on MCX
Safe Haven assets took a hit globally with both gold and silver plunging on Friday after a robust jobs data increased chances of a Federal Reserve rate hike.
Spot gold slumped as low as 5% to $4,353.35 an ounce, while the white metal was impacted more and fell sharply by over 7% to $68.78 an ounce.
Both metals declined on the Multi Commodity Exchange as well, with the yelllow metal's futures for August 2026 trading near days's low at Rs 1,55,154 per 10 grams, down by nearly 3%. The july futures for silver traded near the day's low as well, down by 6% to Rs 2,49,097 per kg.
ALSO READ: AI Chip Rout Drags Nasdaq 2% To Day's Low; S&P 500, Dow In Red
The sudden decline comes after job growth in America exceeded all expectations with nonfarm payrolls increasing to 172,000 and the unemployment rate holding steady at 4.3%. The data, in turn, fuelled possibilities of a Federal Reserve rate hike.
The US employment report, while indicating a healthy growth in the economy, comes as a double whammy for investors in the face of an already spiking inflation caused by global energy disruption.
“Our base case remains that the Fed stays on hold through 2026, but if employment data continues to track around May's pace, rate hikes this year would come firmly into play," Seema Shah from Principal Asset Management told Bloomberg.
US Treasury Yields rose on increased Fed rate hike bets with 10-year Treasuries advancing six basis points to 4.53% and 2-year Treasuries advancing nine basis points to 4.13%.
ALSO READ: AI Chip Stocks Bleed: AMD, Marvell, Intel, Micron Among Top Nasdaq Losers, Shed Up To 9%
"Gold faces a double headwind from rising real yields and a firmer dollar," Elias Haddad at Brown Brothers Harriman & Co. told Bloomberg.
He underlined that the metals may dive deeper as they breach below the 200-day moving average, a widely watched measure of long-term momentum.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.