MCX Gold Falls Below ₹1.56 Lakh; Silver Also Weakens

Gold and silver prices slipped in early trade on the Multi Commodity Exchange on Friday, 4 September. Profit booking set in as the US dollar and bond yields moved higher. Traders were also awaiting the US nonfarm payrolls report, due later in the day, for cues on the US Federal Reserve’s next policy move.

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At around 9:10 AM, MCX gold October futures traded 0.47% lower at ₹1,55,041 per 10 grams. MCX silver December contracts were down 0.48% at ₹2,41,189 per kg.  

Gold was also weaker in the US futures market. Contracts for December delivery dropped 0.30% to $4,513.76 per troy ounce.  

The benchmark 10-year bond yield rose to 4.77%, snapping a two-session decline. The dollar index also ticked up, reaching 99.02 compared with 98.91 in the previous session. The firmer dollar and higher yield put pressure on gold. 

Gold has moved sharply in recent sessions as traders assess what the US Federal Reserve may do at its 15–16 September policy meeting. Reuters cited the CME FedWatch Tool as showing about a 50% chance of a rate hike later this month.  

Rising expectations of an interest rate increase have kept the dollar index and long-dated yields up. Inflation concerns linked to the US-Iran war and rising government debt have also prompted bond selling, driving yields higher.  

Attention now rests on the U.S. nonfarm payrolls report due later today. The figures can influence expectations surrounding the Federal Reserve’s policy decision.  

The US-Iran conflict remains a key headwind for gold prices. Tehran said on Thursday that it had targeted US military bases in Kuwait and the United Arab Emirates (UAE).  

US Vice President J.D. Vance said on Thursday, local time, that the administration of US President Donald Trump has several options for dealing with Tehran. These include economic, military, diplomatic and covert measures.  

Ravi Singh, Chief Research Officer at Master Capital Services, has placed the immediate upside targets for MCX gold at ₹1,58,000 and ₹1,60,000. A decisive breakout of the higher target could open further upside. With ₹1,50,000 intact as the key base, the strategy remains buy on dips.  

Manoj Kumar Jain of Prithvifinmart Commodity Research marked ₹1,54,400 and ₹1,53,750 as the support levels for MCX gold. On the higher side, he said resistance could come in at ₹1,56,600 and ₹1,58,000. 

For silver, the levels to watch on the downside are ₹2,40,000 and ₹2,37,700. Jain put the resistance levels at ₹2,45,000 and ₹2,48,000. 

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said gold may remain in the ₹1,51,000–₹1,55,500 range.