Gold and silver prices commenced the trading session on the Multi Commodity Exchange with declines for the second consecutive day on Monday. This movement follows stronger-than-anticipated US employment figures, which bolstered expectations for elevated interest rates. Meanwhile, investors are poised for critical US inflation data scheduled for release later this week, seeking additional insight into the Federal Reserve’s policy trajectory. In the domestic market, MCX silver futures for September 2026 delivery declined by Rs 1,235, settling at Rs 2,36,423 per kg.
Gold futures for October 2026 delivery experienced a decrease of Rs 500, settling at Rs 1,52,244 per 10 grams. With today’s decline, gold and silver have decreased by Rs 3,600 and Rs 6,000, respectively, over the past two sessions. Data released on Friday indicated a significant acceleration in US job growth for August, with the unemployment rate holding steady at 4.1%. The figures indicated an enhancement in the labour market following recent vulnerabilities, thereby maintaining the possibility of a rate increase at the Fed’s September meeting. The US producer price index is scheduled for release on Thursday, with consumer price index data to follow on Friday.
A robust inflation report would bolster anticipations of a Federal Reserve interest rate increase, elevate yields, and exert additional downward pressure on gold prices. Traders are assigning a probability of 58.4% to the likelihood of a rate hike during the Federal Reserve’s meeting scheduled for September 15-16, as indicated by CME’s FedWatch tool. Gold is often considered a hedge against inflation; however, elevated interest rates generally diminish the attractiveness 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 heightened concerns over a prolonged disruption to Middle East oil supplies. The most recent escalation occurred on Saturday when US forces targeted three Iranian oil tankers, as reported by US Central Command. One of the vessels was struck off the coast of Kharg Island, adjacent to Iran’s pivotal oil export hub.
