Gold, Silver Prices Weaken Amid Stronger US Jobs Data

The gold and silver prices continued to face pressure in early Asian trade on September 7, due to stronger-than-expected US jobs data. The COMEX gold price was trading at around $4,456.50 an ounce, down by 0.45%, while the silver price was at $66.685 an ounce, lower by 0.09%. These prices are influenced by various factors such as US inflation data, crude oil prices, and developments in West Asia.

According to Pranav Mer, Senior Vice President of EBG - Commodity & Currency Research, JM Financial Services, 'US inflation numbers would be the key trigger for bullion markets amid considerable speculation over the interest rate outlook.' The US Consumer Price Index (CPI) for August is expected on September 11 and a stronger-than-expected reading could reinforce expectations that the Federal Reserve will keep interest rates higher for longer.

Higher interest rates generally reduce the appeal of gold as it does not generate interest income. However, central-bank demand remains an important structural factor for gold. The People's Bank of China has bought 20 tonnes of gold in August, extending its buying streak to 21 consecutive months.