Gold traded lower on MCX on September 4 amid profit booking as the US dollar and bond yields rose, while investors awaited US payrolls data for signals on the US Federal Reserve's next policy move. October gold futures fell 0.54% to Rs. 1,54,935 per 10 grams, and September silver futures declined 0.61% to Rs. 2,40,865.
Meanwhile, Brent crude futures rose 0.53% to USD 96.03 per barrel. US West Texas Intermediate (WTI) edged higher by 0.83% to USD 92.06 per barrel.
The CME FedWatch Tool indicates markets are currently pricing in a 49.8% probability that the Fed will keep rates unchanged and a 50.2% chance of a rate hike in September.
24K gold rose by Rs. 131 to Rs. 1,56,660 per 10 grams, while 22K gold also advanced by Rs. 120 to Rs. 1,46,600. By city, Mumbai and Kolkata mirrored prices at Rs. 1,56,660, while Delhi was at Rs. 1,56,810 and Chennai at Rs. 1,56,660.
US gold prices held steady on Friday as attention turned to highly anticipated US payrolls data for clues on the Federal Reserve's next interest rate decision.
Spot gold held its ground at USD 4,477.10 per ounce. US gold futures for December delivery fell 0.4% to USD 4,522.60.
Spot silver fell 0.3% to USD 66.78 per ounce. Platinum lost 0.8% to USD 1,811.28 and palladium declined 0.4% to USD 1,415.75,
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"Weak figures and a rise in unemployment could weaken the case for a rate hike. In this case, gold could recover. However, the metal could remain exposed to changing sentiment, with inflation data releases coming next week," said Ross Maxwell, global strategy operations lead, VT Markets.
"The market continues to benefit from central bank demand, which could limit the extent of any decline.”
On MCX, gold has support at Rs. 1,54,400 and Rs. 1,53,750, and resistance at Rs. 1,56,600 and Rs. 1,58,000, while silver has support at Rs. 2,40,000 and Rs. 2,37,700, and resistance at Rs. 2,45,000 and Rs. 2,48,000.