Gold and Silver Prices Plummet on MCX Amid US Dollar Surge

Gold and silver prices dipped on the Multi Commodity Exchange (MCX) in early deals on Friday, September 4, due to an uptick in the US dollar and bond yields. The MCX gold October futures fell by 0.47% to ₹1,55,041 per 10 grams, while the MCX silver December contracts dropped by 0.48% to ₹2,41,189 per kg around 9:10 AM.

The US dollar index moved up to 99.02 from 98.91 at the previous session, weighing on gold prices. The benchmark 10-year bond yield inched up to 4.77%, also contributing to the decline. Rising expectations of interest rate hikes by the US Federal Reserve are keeping the dollar index and long-dated yields up.

The focus is now on the U.S. nonfarm payrolls report due later today, which can influence expectations about the Fed policy. Analysts believe that gold may trade between ₹1,51,000 and ₹1,55,500, according to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities.