US Jobs Data Sparks Rate Hike Bets, Gold and Silver Prices Fall
Gold and silver prices fell on Monday in India as stronger-than-expected US jobs data reinforced expectations of higher interest rates from the Federal Reserve. The Multi Commodity Exchange saw gold futures for October 2026 delivery decline by Rs 500 to Rs 1,52,244 per 10 grams. Silver futures for September 2026 delivery dropped Rs 1,235 to Rs 2,36,423 per kg.
The US jobs data showed job growth accelerated sharply in August, with the unemployment rate remaining steady at 4.1%. This has kept a rate increase at the Fed's September meeting on the table, according to CME's FedWatch tool, which is pricing in a 58.4% chance of a rate hike.
Higher interest rates tend to reduce the appeal of non-yielding bullion like gold, while inflation hedges typically rise with higher interest rates. Investors await key US inflation data due later this week for further clarity on the Federal Reserve's policy outlook.