On the international front, COMEX gold was down 0.37% at $4,522.90 an ounce, while COMEX silver declined 0.39% to $67.44 an ounce. Gold traded in a range of $4,513-$4,533.60 an ounce, while silver moved between $67.18 and $67.81 an ounce.
The modest decline comes a day after precious metals rebounded sharply. In New Delhi, gold of 99.9% purity rose ₹3,400 to ₹1.59 lakh per 10 grams on Thursday (Septe,ber 3), breaking a six-session losing streak. Silver also jumped ₹5,000 to ₹2.40 lakh per kg.
According to Gaurav Garg, Head of Research at Lemonn, gold and silver rebounded as US Treasury yields eased from recent highs, while renewed geopolitical tensions supported safe-haven demand.
Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said the recovery highlighted gold’s sensitivity to changes in US monetary-policy expectations. Weaker-than-expected private employment data has challenged expectations of a hawkish Federal Reserve, putting pressure on the dollar and Treasury yields.
Why are gold and silver moving?
Markets are now awaiting the US nonfarm payrolls report due Friday (September 4), which could provide fresh clues on the labour market and the Fed’s next policy move.
Gold generally benefits from lower interest-rate expectations because falling yields reduce the opportunity cost of holding the non-yielding asset. A weaker dollar can also support bullion prices.
Akshat Siddhant, Lead Quant Analyst at Mudrex, said gold recovered after hitting a one-month low, while silver also bounced from two-week lows, helped by a weaker dollar.Meanwhile, Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions and President of the India Bullion and Jewellers Association, said gold and silver rebounded as the dollar and Treasury yields eased, with markets preparing for the US jobs report.
He also pointed to the geopolitical backdrop, with the ongoing US-Iran conflict adding to uncertainty in global markets.
What next for gold?
The near-term outlook for bullion is likely to remain volatile as traders assess the US jobs data, dollar movements and Treasury yields.
Gandhi said weaker labour-market data could extend the dollar’s decline and support gold, while stronger data or hawkish Fed signals could revive rate-hike expectations and weigh on bullion.
For Indian investors, domestic gold and silver prices will also depend on the rupee-dollar exchange rate, apart from movements in international bullion prices.
-With Reuters inputs
