Gold Prices Plummet on MCX as Strong US Jobs Data Boosts Rate Hike Expectations

Gold prices fell sharply on Monday due to strong US jobs data, which boosted expectations of a Fed rate hike and reduced the appeal of non-yielding metals. On the Multi Commodity Exchange (MCX), gold futures for October 5 opened down by Rs 488 or 0.31 per cent at Rs 1,52,279 per 10 grams against the previous close of Rs 1,52,767. The price fell further to touch an intraday low of Rs 1,51,850, dropping Rs 917 or 0.60 per cent. As of now, gold is trading at Rs 1,51,900 with a drop of Rs 867. MCX Gold has opened with a mild gap down below Rs 1,52,300 and is trading near Rs 1,52,500, down 0.20 per cent, holding above its 50-EMA. Immediate resistance is at Rs 1,53,700-1,54,000, and a break above targets the next resistance at Rs 1,55,300-1,56,000. Immediate support is at Rs 1,50,700-1,50,000 (100-day EMA), with next support at Rs 1,48,000-1,47,300. RSI at 47.02, lower, shows momentum has clearly turned softer. Domestic gold is mirroring the global reaction to Friday's strong US jobs data, said Ponmudi R, CEO of Enrich Money. Similarly, silver futures on MCX opened in the red, falling by Rs 482 or 0.20 per cent at Rs 2,37,176 against the previous close of Rs 2,37,901. It later touched an intraday low of Rs 2,36,827, a fall of Rs 1,432 or 0.60 per cent.