Gold, Silver Prices Plummet on MCX Amid Stronger Dollar and US Jobs Data

The prices of gold and silver on the Multi Commodity Exchange (MCX) dropped in the morning session on Monday, September 7. This decline was due to weak global cues and a stronger US dollar index. MCX gold October series fell by 0.30% to ₹1,52,315 per 10 grams, while MCE silver December contracts declined by 0.33% to ₹2,36,885 per kg.

The US jobs data for August showed that the unemployment rate remained steady at 4.1%, with payrolls increasing by 162,000. This led to speculation about a potential US Federal Reserve (Fed) rate hike next week. The strong US jobs report has pushed up expectations of a September Fed rate hike to around 60%.

Ravi Singh, Chief Research Officer at Master Capital Services, noted that the weakness in MCX gold is aligned with international gold prices. The global gold market has struggled near $4,400 after stronger-than-expected US payrolls sharply increased expectations of a September Fed rate hike.