US Jobs Data Sinks Gold and Silver Prices Amid Hawkish Rate Expectations
Gold and silver prices fell in futures trade on Monday, September 7, due to stronger-than-expected US jobs data. The US non-farm payrolls rose by 162,000 in August, nearly three times the market expectation of around 53,000.
Ashish Rajodiya, Commodity Research Analyst at PL Capital, said the stronger jobs data revived expectations of a September Fed rate hike. Higher interest rates and bond yields typically increase the opportunity cost of holding gold and silver.
On the Multi Commodity Exchange (MCX), gold contracts for October delivery fell ₹462, or 0.3%, to ₹1.52 lakh per 10 grams, while silver contracts for December delivery declined ₹975, or 0.41%, to ₹2.36 lakh per kg.
However, the rise in crude oil prices is providing a counterforce to the pressure from higher US rate expectations. WTI crude has moved above $92 a barrel, while Brent has approached $97 amid renewed geopolitical tensions involving the US and Iran.