Gold and silver prices eased in domestic futures trading on Friday, September 4, after both precious metals gained sharply in the previous session. Investors are now closely watching key US employment data for fresh signals on the Federal Reserve’s interest-rate policy.
On the Multi Commodity Exchange (MCX), gold futures were trading 0.38% lower at ₹1,55,610 per 10 grams, while silver futures declined around 0.59% to ₹2,40,560 per kg during morning trade. The movement came as traders remained cautious ahead of the US non-farm payrolls and unemployment data due later in the day.
The latest figures are important because they could influence expectations about the Federal Reserve’s next policy decision. Investors are assessing whether the US economy is slowing enough for the central bank to keep interest rates steady or consider monetary easing.
Despite Friday’s decline, gold prices continue to trade close to historically high levels. The precious metal has received support from expectations of easier US monetary policy, a softer dollar and continued demand for safe-haven assets.
Gold does not generate interest income, so it typically becomes more attractive when interest rates or bond yields decline. Conversely, expectations of higher rates can put pressure on bullion as investors may prefer interest-bearing assets.
Silver has also seen strong buying interest. Unlike gold, silver has a significant industrial-use component, making its price sensitive to both investment demand and expectations about global economic activity.
Retail gold rates continued to differ across major Indian cities on Friday. The price variations can arise from local taxes, transportation costs, demand conditions and jewellers’ pricing.
In Delhi, 24-karat gold was quoted at around ₹1,54,880 per 10 grams, while 22-karat gold stood at approximately ₹1,41,973 per 10 grams.
In Mumbai, the 24K gold rate was around ₹1,55,150 per 10 grams and 22K gold was priced at about ₹1,42,221.
Bengaluru recorded a 24K gold price of nearly ₹1,55,270 per 10 grams, while 22K gold stood at around ₹1,42,331.
In Kolkata, 24K gold was available at approximately ₹1,54,940 per 10 grams and 22K gold at ₹1,42,028.
Hyderabad recorded 24K gold at around ₹1,55,390 per 10 grams and 22K gold at approximately ₹1,42,441.
Among the major cities covered, Chennai recorded a 24K gold price of about ₹1,55,600 per 10 grams, while 22K gold was around ₹1,41,387.
Silver 999 prices also remained elevated across the major markets, with rates varying between cities.
The US employment report is likely to determine the short-term direction of global gold prices.
A weaker-than-expected jobs report could strengthen expectations that the Federal Reserve will maintain or eventually lower interest rates. Such a scenario could provide additional support to gold and silver.
On the other hand, stronger employment numbers could reduce expectations of an imminent policy shift and potentially put pressure on bullion prices.
Federal Reserve Governor Christopher Waller has indicated that he could support keeping interest rates unchanged at the September meeting if incoming data continues to show moderating inflation. This has added to the focus on Friday’s economic numbers.
The US dollar is another important influence on gold prices. Since international bullion is traded largely in dollars, movements in the currency can affect demand from investors holding other currencies. Treasury yields and geopolitical uncertainty are also likely to remain important factors.
Friday’s decline does not necessarily signal a major change in the broader gold market. Prices remain significantly higher than their levels earlier in the year, and daily movements can be sharp.
People planning to buy jewellery should also remember that the quoted gold rate is not the final price they pay. GST, making charges and other costs are added to the base value of the metal.
Gold purity is another important consideration. 24-karat gold represents the highest commonly traded purity, while 22-karat gold is widely used for jewellery because it offers greater strength and durability.
Investors tracking gold price today, silver price today, MCX gold, MCX silver, 24K gold, 22K gold and silver 999 will be watching the US employment numbers for the next major signal.
With precious metals already trading at elevated levels, changes in interest-rate expectations could result in further volatility in gold and silver prices over the coming sessions.