Gold Prices Drop as Investors Await US Nonfarm Payrolls Report

Gold prices declined in futures trade by Rs 431 to Rs 1.55 lakh per 10 grams, snapping a two-day rally due to investor caution ahead of key US data.

The decline on the Multi Commodity Exchange was largely attributed to profit-taking after recent gains, while investors remained cautious ahead of the US Nonfarm Payrolls report.

Market participants are awaiting the US nonfarm payrolls report for clues on Federal Reserve interest rate outlook, which could determine the next move in the dollar, treasury yields and precious metals, according to Gaurav Garg, Head of Research at brokerage platform Lemonn.