Gold Prediction: Will Gold prices fall further? Experts reveal key levels for investors to watch - livemint.com

AI desk brief

Gold and silver are under pressure after stronger-than-expected US payrolls revived the prospect of tighter Fed policy, with spot gold down 0.7% to $4,398.13/oz and December US gold futures down 0.7% to $4,443.60. Spot silver fell 1% to $65.53/oz. In India, MCX gold slipped below ₹1,52,500/10g and MCX silver below ₹2,37,500/kg as domestic prices tracked the global selloff.

The key macro input was an August nonfarm payrolls print of 162,000, versus around 53,000 expected, alongside an unchanged 4.1% unemployment rate and 3.1% y/y wage growth. June and July payrolls were also revised up by a combined 55,000, reinforcing the view that the US labor market remains resilient and lifting market-implied odds of a September Fed hike to around 59-60% from about 50% pre-data, according to PL Capital’s Ashish Rajodiya.

Near term, the market is focused on this week’s US inflation data and the September 16 Fed decision. Rajodiya argues the latest move looks more like a pause in the broader uptrend than a full trend reversal, citing resilient physical and investment demand for gold and relative strength in silver from industrial offtake. Brickwork Ratings’ Rajeev Sharan expects gold to remain under pressure over the next two weeks, warning that a hike or hawkish hold could push Treasury yields higher and weigh further on non-yielding metals.