Gold Dips Rs 1,400 While Silver Climbs Rs 1,025 Amid Fed Rate Hike Uncertainty
Gold and silver prices opened with contrasting trends on the Multi Commodity Exchange (MCX) on Monday, influenced by recent weak US economic data that reduced expectations of a Federal Reserve rate hike in October. Gold futures for December 2026 delivery dropped Rs 1,400 to Rs 1,49,050 per 10 grams, while silver futures for the same delivery date rose Rs 1,025 to Rs 2,26,902 per kg.
The shift in market sentiment followed data showing slower-than-expected US job growth in September and downward revisions to previous months' nonfarm payrolls. As a result, the probability of a Fed rate hike in October fell to 22%, down from 64% a week earlier, according to the CME FedWatch Tool. The US central bank had raised its benchmark interest rate by 25 basis points in September, the first increase in three years.
Geopolitical developments also played a role in market movements. Yemen's Saudi-backed government announced a major military campaign against Iran-backed Houthis, while oil prices slipped due to increased crude exports from the Middle East and G7 nations' release of oil stocks. Despite these factors, concerns over potential damage to Gulf oil infrastructure persisted.
Internationally, spot gold prices rose 0.4% to $4,158.17 per ounce, while US gold futures for December delivery gained 0.6% to $4,186.40. Other precious metals also saw gains, with spot silver up 1.7% to $61.40 per ounce, platinum rising 0.6% to $1,708.48, and palladium increasing 0.6% to $1,175.04.