3 days ago
Gold, Silver Brace for Volatile September After Sharp Correction
Gold and silver prices fell sharply during the past week.
Gold in India lost more than Rs 6,000 per 10 grams.
Silver also dropped, although it gained more than gold during August.
Traders are preparing for possible price swings in September.
They will watch US jobs reports and other economic numbers.
These reports may influence what the Federal Reserve does at its September meeting.
Tensions involving the United States and Iran could also affect oil prices and inflation expectations.
Analysts say gold might stabilise or fall again if investors continue taking profits.
MCX October gold futures fell Rs 6,157, or 3.8%, last week to Rs 1.56 lakh per 10 grams.
MCX September silver futures declined Rs 9,893, or 4%, to Rs 2.36 lakh per kilogram.
International December Comex gold fell USD 150.7, or 3.2%, while silver dropped USD 2.56, or 3.64%, last week.
Investors will track US jobs data, including non-farm payrolls, unemployment figures and ADP employment changes, ahead of the Federal Reserve’s September meeting.
Analysts said dollar movements, Federal Reserve expectations and US-Iran tensions could determine whether gold stabilises or faces further profit booking.
- Who
- Commodity traders, investors and analysts, including Jateen Trivedi, Pranav Mer and Gaurav Garg, are monitoring bullion markets.
- What
- Gold and silver prices corrected sharply as markets prepared for volatility driven by economic data, Federal Reserve expectations and geopolitical tensions.
- Where
- The developments involve India’s Multi Commodity Exchange, international Comex markets, the United States, Iran and the Strait of Hormuz.
- When
- The report was published on August 30, 2026; traders are focused on September and the Federal Reserve’s upcoming September meeting.
- Why
- US labour-market data, inflation figures, dollar movements and geopolitical developments could influence interest-rate expectations, inflation and bullion prices.
Factors Supporting Stabilisation
Factors Pointing to Further Declines
Gold’s next direction
Factors Supporting Stabilisation
Gold could stabilise if dollar movements, labour-market data and Federal Reserve expectations become more supportive after the correction.
Factors Pointing to Further Declines
Gold could enter another phase of profit booking if selling pressure continues following the sharp weekly decline.
Economic and geopolitical uncertainty
Factors Supporting Stabilisation
Upcoming jobs and inflation data could give markets clearer signals about the Federal Reserve’s September policy outlook.
Factors Pointing to Further Declines
Uncertain US-Iran developments and risks around the Strait of Hormuz could increase uncertainty over oil prices, inflation expectations and bullion markets.
Key facts
- MCX gold move
- October gold futures fell Rs 6,157, or 3.8%, last week to Rs 1.56 lakh per 10 grams.
- MCX silver move
- September silver futures fell Rs 9,893, or 4%, to Rs 2.36 lakh per kilogram.
- International gold move
- December Comex gold futures declined USD 150.7, or 3.2%, to USD 4,680.6 per ounce.
- International silver move
- Silver futures dropped USD 2.56, or 3.64%, to USD 67.78 per ounce.
- August performance
- Silver gained around 21% in August, compared with gold’s 15.7% gain.
- Key economic data
- Markets will watch manufacturing and services PMI data, Eurozone and German inflation figures, US non-farm payrolls, unemployment data and ADP employment changes.
- Geopolitical focus
- Traders are monitoring the US-Iran conflict and developments around the Strait of Hormuz.
Quotes
Jateen Trivedi
Vice President, Research Analyst for Commodity and Currency at LKP Securities
“The combination of dollar movement, labour-market data, Fed expectations and geopolitical headlines is likely to determine whether gold stabilises after the recent correction or enters another phase of profit booking.”
thehindubusinessline.com
“The coming week is likely to remain highly volatile, with market participants attempting to price in the probability of a September Federal Reserve policy change.”
thehindubusinessline.com
thehansindia.com
Sources
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