Gold prices dip Rs 3,600/10 gram, silver down Rs 6,000/kg as US jobs data lifts rate hike bets; buy, sell or hold?

Gold and silver prices opened lower for a second session in a row on the Multi Commodity Exchange on Monday as stronger-than-expected US jobs data reinforced expectations of higher interest rates, while investors awaited key US inflation data due later this week for further clarity on the Federal Reserve’s policy outlook.

In the domestic market, MCX silver futures for September 2026 delivery were down Rs 1,235 to Rs 2,36,423 per kg. Gold futures for October 2026 delivery declined by Rs 500 to Rs 1,52,244 per 10 grams. With today’s decline, gold and silver have fallen Rs 3,600 and Rs 6,000, respectively, over the past two sessions.

Data released on Friday showed US job growth accelerated sharply in August, while the unemployment rate remained steady at 4.1%. The figures pointed to an improvement in the labour market after recent weakness and kept a rate increase at the Fed’s September meeting on the table.


The US producer price index (PPI) is due on Thursday, followed by consumer price index (CPI) data on Friday. A strong inflation reading would reinforce expectations of a Fed rate hike, push yields higher and put further pressure on gold.

Traders are pricing in a 58.4% chance of a rate hike at the Fed’s September 15-16 meeting, according to CME’s FedWatch tool. While gold is typically viewed as an inflation hedge, higher interest rates tend to reduce the appeal of non-yielding bullion.

Meanwhile, oil prices extended their gains on Monday as fresh strikes by the US and Iran against vessels in and around the Strait of Hormuz intensified concerns over a prolonged disruption to Middle East oil supplies. The latest escalation came on Saturday when US forces struck three Iranian oil tankers, according to US Central Command. One of the vessels was hit off the coast of Kharg Island, near Iran’s key oil export hub.

Gold, silver international prices

Spot gold fell 0.5% to $4,405.47 per ounce after declining 1% on Friday. US gold futures for December delivery also fell 0.5% to $4,452.20.

Among other precious metals, spot silver eased 0.2% to $66.03 per ounce, while platinum fell 0.8% to $1,805.53 and palladium declined 0.7% to $1,396.08.

How should you trade gold?

Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities, says gold, near $4,425, has support near $4,280 and resistance near $4,520, and a clear break above $4,520 is needed to signal that the consolidation is done and the uptrend is resuming; until then, we expect the sideways phase to continue.

Silver, near $66, has support at $62.50 and resistance at $68, and a break above $68 could see it head towards $71.30. Overall, both metals remain in a sideways trend, with Friday's US inflation data and next week's Fed meeting being the key events.

Manoj Kumar Jain of Prithvi Finmart said gold on the MCX has support at Rs 1,51,500-1,50,150 and resistance at Rs 1,53,650-1,54,400. For silver, support is seen at Rs 2,35,000-2,33,300, while resistance is placed at Rs 2,40,000-2,42,400.

Gold rates in physical markets

Gold price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,13,632/8 grams, while pure gold (24 carat) prices stand at Rs 1,23,952/8 grams.

Gold price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,13,512/8 grams, while pure gold (24 carat) prices stand at Rs 1,23,832/8 grams.

Gold price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,14,880/8 grams, while pure gold (24 carat) prices stand at Rs 1,25,328/8 grams.

Gold price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,13,512/8 grams, while pure gold (24 carat) prices stand at Rs 1,23,832/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)