Gold, Silver Futures Retreat, US Payrolls Data Keeps Investors Cautious

Mumbai: Gold prices ended their two-day rise in futures trade, falling Rs 431 as investors booked profits and remained cautious before the US nonfarm payrolls data.

On the Multi Commodity Exchange, gold futures for October delivery declined Rs 431, or 0.28 percent, to Rs 1,55,344 per 10 grams.

Investors avoided positions as the US jobs report could influence expectations around the Federal Reserve’s next interest-rate decision.

Global gold remains firm

Comex gold futures for December delivery slipped marginally to USD 4,528.54 per ounce in New York. Spot gold held near USD 4,480 and remained on course for a modest weekly gain despite swings.

Gold had fallen steeply on Tuesday before staging a strong rebound. Support came after a Federal Reserve governor indicated that rates could remain unchanged if inflation continued to ease.

The remarks reduced expectations of a rate increase at the September meeting to nearly even odds, compared with about 68 percent earlier in the week. A weaker dollar, which fell to its lowest level since May, also supported bullion.

Silver loses Rs 749

Silver futures also declined as investors locked in profits after a two-day rise. The December contract on the MCX fell Rs 749, or 0.31 percent, to Rs 2,41,600 per kg.

Comex silver futures for December delivery traded marginally lower at USD 67.63 per ounce.

Elevated fuel prices and uncertainty over the global economy weighed on precious metals. Renewed US strikes on Iran, Iranian retaliation, reduced traffic through the Strait of Hormuz and refinery damage in the Middle East and Russia have strengthened supply concerns.

Key triggers ahead

The US payrolls report is the immediate trigger, followed by inflation data next week. Strong employment numbers could slow gold’s rebound by reviving rate concerns.

Still, steady exchange-traded fund demand and renewed buying by global money managers indicate continued confidence. Technically, gold must sustain above USD 4,550 per ounce to begin its next upward move.