Gold Prices Tumble Amid Strong US Jobs Data and Fed Rate Hike Chatter
MCX gold and silver prices fell on Monday amid weak global cues following strong US jobs data, which strengthened expectations of interest rate hikes by the Federal Reserve.
The MCX gold October series was down 0.30% at ₹1,52,315 per 10 grams, while MCE silver December contracts were 0.33% down at ₹2,36,885 per kg around 9:15 AM on Monday.
US gold futures for the December series declined 0.75% to $4,436.49 per troy ounce amid a mild uptick in the dollar index.
Jeffrey Roach, Chief Economist for LPL Financial, said 'August payrolls increased by 1,62,000, following an upward revision to July's gain of 21,000. This report will likely bring a few more FOMC voting members onto the hawkish side of the debate.'
Ravi Singh, Chief Research Officer at Master Capital Services, noted that 'The weakness in MCX gold is aligned with international gold, which has struggled near $4,400 after stronger-than-expected US payrolls sharply increased expectations of a September Fed rate hike.'