Gold and Silver Futures Drop as Investors Await US Payroll Data
Precious metal prices retreated following two days of gains ahead of the scheduled US nonfarm payrolls report.
Gold and silver futures fell on Friday after extending gains for two consecutive sessions. Gold prices opened lower at Rs 1,55,010 per 10 grams, declining by Rs 2,100 from previous levels. Silver prices dropped to Rs 2,40,858 per kilogram, a decrease of Rs 1,500. This reaction occurred on the Multi Commodity Exchange as traders waited for the US nonfarm payrolls report at 1230 GMT. The upcoming labor market data will provide signals regarding the Federal Reserve's next interest rate move. Recent unemployment benefit claims rose slightly while layoffs remained low, indicating stable labor conditions. Market models currently assign a 62% probability to a US rate hike this month. Analysts note that higher interest rates increase the opportunity cost of holding non-yielding assets like gold and silver. Concurrently, geopolitical tensions in the Middle East persisted after exchanges between Washington and Tehran marked the largest since July.
