Gold prices in India moved higher on September 3 as a weaker US dollar and falling Treasury yields supported demand for the precious metal.
Investors are now closely watching the upcoming US nonfarm payrolls report.
The data could give fresh clues about the Federal Reserve’s next interest-rate decision.
Gold and Silver Prices Rise in India
In Mumbai, 24-carat gold was priced at Rs 1,55,350 per 10 grams, while 22-carat gold stood at Rs 1,42,400 per 10 grams, according to Goodreturns.in.
Gold also gained on the Multi Commodity Exchange (MCX).
The October gold contract rose 1.04% to Rs 1,53,988 per 10 grams in morning trading.
MCX September silver futures also climbed 0.97% to Rs 2,28,550 per kg.
Check Gold and Silver Rates in Major Cities
| City | 22K Gold (Rs/10g) | 24K Gold (Rs/10g) | Silver (Rs/kg) |
|---|---|---|---|
| New Delhi | Rs 1,42,550 | Rs 1,55,500 | Rs 2,50,000 |
| Mumbai | Rs 1,42,400 | Rs 1,55,350 | Rs 2,50,000 |
| Kolkata | Rs 1,42,400 | Rs 1,55,350 | Rs 2,50,000 |
| Chennai | Rs 1,42,400 | Rs 1,55,350 | Rs 2,50,000 |
| Bengaluru | Rs 1,42,400 | Rs 1,55,350 | Rs 2,50,000 |
| Jaipur | Rs 1,42,550 | Rs 1,55,500 | Rs 2,50,000 |
| Ahmedabad | Rs 1,42,450 | Rs 1,55,400 | Rs 2,50,000 |
| Pune | Rs 1,42,400 | Rs 1,55,350 | Rs 2,50,000 |
| Hyderabad | Rs 1,42,400 | Rs 1,55,350 | Rs 2,50,000 |
Global Gold Prices Also Bounce Back
Gold prices were also higher in international markets.
Spot gold rose 1.1% to $4,434.70 per ounce, recovering after hitting a near one-month low in the previous session.
US gold futures gained 1.5% to $4,480.10 per ounce.
Other precious metals also moved higher. Spot silver rose 1.2% to $66.08, platinum gained 1% to $1,777.79, while palladium increased 0.8% to $1,356.50.
Why Are Investors Watching the US Jobs Data?
The US jobs report could become an important factor for the Federal Reserve’s next policy decision.
Markets are currently pricing in a 62% probability of a US rate hike this month, according to the CME FedWatch Tool.
A recent Federal Reserve report showed that US economic activity increased modestly in recent weeks. Employment also rose slightly, while prices increased at a moderate pace.
The mixed economic picture has left investors uncertain about what the Fed may do at its September 15-16 meeting.
Gold usually benefits when interest rates are lower because the metal does not pay interest. When rates rise, holding gold becomes relatively less attractive.
Geopolitical Tensions Remain Another Factor
Geopolitical developments are also keeping markets on alert.
According to Reuters, senior aides to US President Donald Trump are pushing to prevent the Iran war from escalating before the November midterm elections.
US officials could consider increasing military action after the November 3 vote, Reuters reported, citing people familiar with the discussions.
For gold investors, any major escalation in geopolitical tensions could add another layer of uncertainty and potentially influence prices.
