As of 9:42 a.m. ET (1342 GMT), spot gold decreased by 0.2 per cent to $2,486.99 per ounce, while U.S. gold futures also slipped 0.2 per cent to $2,518.30.
“Gold traded weaker, declining by ₹170 to ₹71,200 in MCX and $9 to $2,483 in Comex, primarily due to profit booking ahead of the expected Non-Farm Payroll data, which is anticipated to be higher than the previous month. This could reduce the likelihood of a 0.50 basis point rate cut in the upcoming U.S. Federal Reserve policy meeting on September 18. With a 0.25 basis point cut already priced in, market participants are now awaiting clear signals for a potential 0.50 basis point cut or at least definitive indications of future rate cuts,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
What’s weighing on gold prices?
Traders are confident that the U.S. Federal Reserve will cut interest rates this month, with the CME FedWatch tool indicating a 59% probability of a 25-basis-point reduction.
This week’s U.S. economic data, including Thursday’s ADP employment report and jobless claims, along with Friday’s non-farm payrolls report, will be closely analyzed for insights into the Fed’s rate-cut trajectory.
StoneX analyst Rhona O’Connell noted that bullion was also under pressure due to margin calls triggered by the weakness in equities.
Global shares declined on Wednesday, led by a drop in tech stocks, following a record sell-off in U.S. chipmaker Nvidia and growing concerns about slowing global growth, which weighed on riskier assets.
Spot silver increased by 0.3 per cent, reaching $28.12 per ounce. Platinum also climbed by 0.3 per cent to $905.82, while palladium declined by 0.4 per cent to $934.25.
