Gold and silver prices declined on the MCX in early deals on Friday, 4 September, due to profit booking amid an uptick in the US dollar and bond yields, while investors awaited US payrolls data for further cues on the US Federal Reserve’s next policy move.
MCX gold October futures were 0.47% down at ₹1,55,041 per 10 grams, while MCX silver December contracts were 0.48% down at ₹2,41,189 per kg around 9:10 AM.
US gold futures for December delivery dropped by 0.30% to $4,513.76 per troy ounce.
Benchmark 10-year bond yield inched up to 4.77% after easing in the last two consecutive sessions, while the dollar index moved up to 99.02 from 98.91 at the previous session, weighing on gold prices.
Gold prices have been volatile of late amid speculations of an interest rate hike by the US Federal Reserve in its next policy meeting on 15–16 September. According to Reuters, the CME FedWatch Tool shows markets pricing in about a50% chance of a rate hike later this month.
Rising expectations of interest rate hikes are keeping the dollar index and long-dated yields up. Concerns over inflation, driven by the US-Iran war and rising government debt, are also behind bond selling, which is driving yields higher.
The focus is on the U.S. nonfarm payrolls report due later today, which can influence expectations about the Fed policy.
The US-Iran conflict also remains a key headwind for gold prices. Tehran on Thursday said that it targeted the US military bases in Kuwait and the United Arab Emirates (UAE). US Vice President J.D. Vance on Thursday (local time) said that the US President Donald Trump administration has a range of options to deal with Tehran, including economic, military, diplomatic, and covert measures.
Gold and silver: What experts say
According to Ravi Singh, Chief Research Officer at Master Capital Services, the immediate upside targets for MCX gold are ₹1,58,000 and ₹1,60,000, while a decisive breakout of the higher target could open further upside. With ₹1,50,000 intact as the key base, the strategy remains buy on dips.
Manoj Kumar Jain of Prithvifinmart Commodity Research sees support for MCX gold at ₹1,54,400 and ₹1,53,750, and resistance at ₹1,56,600 and ₹1,58,000, while silver has support at ₹2,40,000 and ₹2,37,700, and resistance at ₹2,45,000 and ₹2,48,000.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, believes gold may trade between ₹1,51,000 and ₹1,55,500.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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