Yellow metal prices on Monday fell on the MCX as well as in the global markets, as gold October futures plunged by 2.52 per cent to reach Rs 46,640 per 10 gram mainly due to rupee appreciation.
Globally too, gold fell by as much as 4.4 per cent to a more than four-month low as robust US jobs data stoked concerns of a sooner-than-expected interest rate hike, which could increase the opportunity cost of holding non-interest bearing bullion.
Also silver September futures on the MCX fell by 4.20 per cent to reach Rs 65,000 per kg. On the COMEX, silver prices declined by 4.5 per cent to trade at $24.33 per ounce for the week.
Gold prices fell to touch $1,763 per ounce for the week, which was its worst fall in the last four months.
“COMEX gold witnessed a volatile start to the week. Price hit a session low of $1677.9 per ounce and is currently trading 1.4 per cent lower near $1738 per ounce. The snap reaction can be attributed to lower trading volumes amid holidays in Japan, Singapore. Weighing on gold price is increased expectations of Fed’s monetary tightening post US non-farm payrolls data and some hawkish comments by Fed officials. ETF outflows also show weaker investor interest amid continuing firmness in equities. However, rising virus cases and increased geopolitical tensions have lent some support. Gold may remain under pressure as market players react to US non-farm payrolls report,” said Ravindra Rao, Head Commodity Research with Kotak Securities.