Gold, Silver Prices Fall as Robust US Jobs Data Dim Fed Rate Cut Hopes
Firm dollar and robust US employment numbers pressure precious metal prices
New Delhi, Nov 21: Gold and silver prices dropped in Friday’s futures trade as a stronger US dollar and fading expectations of a Federal Reserve rate cut weighed on the precious metals market.
On the Multi Commodity Exchange (MCX), gold futures for December delivery slipped ₹355, or 0.29%, to ₹1,22,372 per 10 grams in a turnover of 10,453 lots. Silver futures for December tumbled ₹2,111, or 1.37%, to ₹1,52,040 per kg across 12,907 lots.
Rahul Kalantri, Vice-President (Commodities) at Mehta Equities, said prices turned volatile after the delay in US employment data and diminishing prospects of a December Fed rate cut. The US non-farm payrolls for September rose by 1,19,000, more than double the projections, showing a labour market that is cooling but still resilient.
The unemployment rate edged up to 4.4%, the highest since late 2021, while wage growth at 3.8% marginally exceeded expectations.
Manav Modi, Analyst (Precious Metals) at Motilal Oswal Financial Services, noted that the dollar index remained firm at 100.10, adding further pressure on bullion.
In global markets, Comex gold for December eased 0.14% to USD 4,054.46 per ounce, while silver dropped nearly 2% to USD 49.34 per ounce.
Modi added that the prolonged US government shutdown has disrupted major economic releases, with the Bureau of Labor Statistics combining October and November payroll data and delaying GDP figures. Geopolitical developments around possible Russia–Ukraine peace discussions also affected safe-haven demand.
Meanwhile, minutes from the Federal Open Market Committee’s (FOMC) October meeting showed policymakers proceeded with a rate cut despite concerns about inflation risks and potential weakening in consumer sentiment.
