Gold and silver prices today: Yellow metal falls sharply following better-than-expected US jobs report

Gold opened on the Multi Commodity Exchange (MCX) on Monday at Rs 61,800 per 10 grams and hit an intraday low of Rs 61,555. In the international market, prices hovered around $ 1998.99 per troy ounce.

Meanwhile, silver opened at Rs 72,539 per kg, hit an intraday low of Rs 72,240 on the MCX, and hovered around $22.7 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices fell sharply following a better-than-expected US jobs report.”

The unexpected strength in the labour market sent Treasury yields climbing and kept the Dollar index firm above the 104 mark, diminishing investors’ appetite for the precious metal. The non-farm payrolls figure was stronger than expected and marks an increase from 150,000 the previous month.

The US unemployment rate fell to 3.7% from 3.9%. Updates regarding geopolitical tensions and expectations for a loose monetary policy early next year provided a floor to bullion on lower levels.

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“CME Fed-Watch tool suggests 99% probability for a pause in the December meeting and 45% chance for a rate cut in March. Separate data also showed US consumer sentiment rebounded in early December, giving out a mixed view regarding the future of interest rates. Focus this week will be on US & India CPI and policy meetings from FED, BOE & ECB,” said Modi.

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “We noticed a profit booking at the end of the year 2023. However, it made a lifetime high of 64063 levels. Weakness in the dollar and geopolitical tension are the major reasons for the bull trend in gold and silver."

“For trading, gold may trade between $1990 to $2010 levels, and on MCX, it may trade between 61500 to 62500 levels. Silver may trade between 71500 to 73500 levels,” he added.