Gold Prices Decline Amid Stronger Dollar and Higher Bond Yields

Gold and silver prices declined on September 2 due to a stronger US dollar and higher bond yields. On the MCX, October gold futures traded around ₹1.50 lakh per 10 grams, down 1.06%, while September silver futures were at ₹2.32 lakh per kg, lower by 1.38%. The decline is largely linked to changing expectations around US interest rates.

The latest decline is partly a correction after the recent rally in gold, according to Piyush Jhunjhunwala, Founder & CEO of Stockify. Gold faces near-term pressure from rising crude oil prices, US Treasury yields, and expectations of higher interest rates. However, inflation concerns and geopolitical tensions could continue to provide longer-term support to the metal.

The immediate focus is now on US economic data, particularly the ADP employment report and Friday's non-farm payrolls data. Strong labour-market data could reinforce expectations of tighter monetary policy, while weaker numbers could ease rate-hike bets.