Gold Prices Plummet Amid Hawkish Fed Expectations and Strong US Jobs Data

Gold and silver prices on the Multi Commodity Exchange (MCX) fell sharply on Monday, September 7, due to stronger-than-expected US jobs data that lifted expectations of a potentially hawkish Federal Reserve.

The MCX gold contract for October delivery lost ₹462, or 0.3%, to ₹1.52 lakh per 10 grams, while the silver contract for December delivery declined ₹975, or 0.41%, to ₹2.36 lakh per kg.

Ashish Rajodiya, Commodity Research Analyst at PL Capital, said the stronger jobs data revived expectations of a September Fed rate hike, which would increase interest rates and bond yields, making it more expensive to hold non-yielding assets like gold and silver.

Gaurav Garg, Head of Research at Lemonn, noted that markets are now looking to US inflation readings for further clues on the Fed's policy path, which could impact demand for precious metals.