US Job Growth Report Triggers Gold Price Decline Amid Rate Hike Expectations

The prices of gold and silver on the MCX (Multi Commodity Exchange) have declined due to a strong US job growth report. The unemployment rate in the US remained steady at 4.1% in August, indicating an improvement in the labor market.

This has led to speculation about a possible interest rate hike by the US Federal Reserve next week, further impacting global commodity prices such as gold and silver.

Jeffrey Roach, Chief Economist for LPL Financial, said that the report will likely bring more FOMC (Federal Open Market Committee) 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.

Singh also warned that rising Treasury yields and renewed dollar strength are adding further pressure on gold prices. He cautioned that escalating US-Iran tensions and higher oil prices are keeping inflation risks elevated, and that the upcoming US PPI (Producer Price Index) and CPI (Consumer Price Index) data will be crucial in determining whether rate-hike expectations strengthen further and whether gold faces another leg lower.