Gold and silver slip as Fed comments and US jobs data loom over markets

Precious-metal futures fell sharply last week, with gold down about 3.8% and silver about 4%, as traders await US employment figures and Fed policy cues.

The bullion market entered September on a defensive footing after a pronounced correction last week, with MCX gold futures for October delivery slipping to Rs 1.56 lakh per 10 grams, a drop of Rs 6,157 (about 3.8%). Silver futures for September delivery fell to Rs 2.36 lakh per kilogram, down Rs 9,893 (around 4%). Similar declines were observed in overseas markets, where Comex December gold futures fell $150.7 (3.2%) to $4,680.6 per ounce and silver futures slipped $2.56 (3.64%) to $67.78 per ounce.

Analysts such as Jateen Trivedi of LKP Securities and Pranav Mer of JM Financial Services attributed the downturn to Federal Reserve Chair Kevin Warsh’s speech on inflation, prompting broad profit-taking. Traders will also watch geopolitical developments, notably the US-Iran conflict and possible disruptions in the Strait of Hormuz, which could affect oil prices and inflation expectations. Despite the weekly drop, silver posted a stronger August performance, rising roughly 21% compared with gold’s 15.7% gain, according to Gaurav Garg of Lemonn. Market participants now focus on US labour-market data—including non-farm payrolls, unemployment and ADP numbers—as well as PMI releases from major economies and Eurozone inflation reports, all of which could influence expectations ahead of the Fed’s September meeting.