Gold traded lower on MCX on September 7 amid neutral spot demand and weak global cues after strong US jobs data fueled expectations of interest rate hikes by the US Federal Reserve. October gold futures fell 0.19% to Rs. 1,52,472 per 10 grams, and September silver futures declined 0.14% to Rs. 2,37,314.
Meanwhile, Brent crude futures rose 0.88% to USD 97.13 per barrel. US West Texas Intermediate (WTI) edged higher by 0.95% to USD 92.35 per barrel.
The CME FedWatch Tool indicates markets are currently pricing in a 41.6% probability that the Fed will keep rates unchanged and a 58.4% chance of a rate hike in September.
24K gold fell by Rs. 65 to Rs. 1,54,150 per 10 grams, while 22K gold also declined by Rs. 60 to Rs. 1,41,300. By city, Mumbai and Kolkata mirrored prices at Rs. 1,54,150, while Delhi was at Rs. 1,54,300 and Chennai at Rs. 1,54,150.
US gold prices traded lower on Monday as strong US jobs data reinforced expectations for higher interest rates.
Spot gold was down 0.5% at USD 4,405.47 per ounce. US gold futures for December delivery were down 0.5% at USD 4,452.20.
Spot silver eased 0.2% at USD 66.03 per ounce, platinum lost 0.8% at USD 1,805.53 and palladium declined 0.7% to USD 1,396.08.
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"The jobs number delivered a clear upside surprise and put some pressure on the metal, but it wasn't a complete slam dunk for a September rate hike. The real missing piece of the puzzle arrives this week with US CPI," said Tim Waterer, chief market analyst at KCM Trade.
"A strong inflation print would reinforce expectations of a Fed hike, lift yields further and weigh more heavily on gold.”
On MCX, gold has support at Rs. 1,51,500 and Rs. 1,50,150 and resistance at Rs. 1,53,650 and Rs. 1,54,400, while silver has support at Rs. 2,35,000 and Rs. 2,33,300 and resistance at Rs. 2,40,000 and Rs. 2,42,400.