Gold Prices Fall on Strong US Employment Data
The gold market has seen a decline in prices due to strong employment data from the US. The latest numbers show that non-farm payrolls rose to 162,000 in August, significantly better than market estimates of around 53,000-65,000. This reinforces arguments for maintaining tight monetary policy and increases the probability of a rate hike in September to 60%. As a result, gold prices have fallen, with MCX gold slipping ₹1.54 lakh. Silver, however, remains stable at ₹2.50 lakh.
The strong jobs data has led to increased expectations of interest rate hikes, making it more expensive for investors to hold onto gold. However, the gold market is not under pressure from a single bearish environment. The next key event will be inflation figures from the US, which will provide further hints about the September Federal Reserve decision.