Gold Prices Wipe Out Over Rs 6,000 as Market Awaits US Jobs Data and Geopolitical Tensions

Gold and silver markets are bracing for volatility in September after a sharp correction that wiped out over Rs 6,000 from gold prices. The bullion market's price drop was attributed to various factors, including US jobs data and geopolitical tensions. According to Jateen Trivedi, VP Research Analyst at LKP Securities, the coming week will be highly volatile as market participants attempt to price in the probability of a September Federal Reserve policy change.

The sharp correction led MCX gold futures for October delivery to fall Rs 6,157, or 3.8 per cent, to Rs 1.56 lakh per 10 grams. Similarly, silver futures for September declined by Rs 9,893, or 4 per cent, to Rs 2.36 lakh per kg. Despite the correction, silver outperformed gold in August, gaining around 21 per cent against gold's 15.7 per cent.

Market analysts will closely watch US labour-market indicators, including non-farm payrolls, unemployment data, and ADP employment figures. Geopolitical developments, particularly the US-Iran conflict and developments around the Strait of Hormuz, could add to uncertainty and influence oil prices and inflation expectations.