Gold Near Rs. 1.22 Lakh Crashes on MCX and Silver Falls Over 1% – Did the US Jobs Report Cause This Drop?

MCX Gold Slips as US Payrolls Surge and Dollar Strengthens, Pressuring Demand and Key Support Levels 

Gold prices on the Multi-Commodity Exchange (MCX) fell on Friday, trading near Rs. 1.22 lakh per 10 grams. The fall came after a stronger US jobs report raised expectations that the Federal Reserve would keep interest rates steady in December.

MCX gold opened at Rs. 1,22,373 per 10 grams, down 0.28% from the previous close of Rs. 1,22,727. By mid-morning, it was around Rs. 1,22,442, dropping Rs. 285 or 0.23%. Silver also fell sharply. MCX silver opened at Rs. 1,53,750 per kg and later slipped to Rs. 1,52,433, down over 1%.

Global Factors Weigh on Precious Metals

Global gold prices weakened after the US Labor Department reported that September nonfarm payrolls rose by 119,000, more than double the expected 50,000. The unemployment rate rose to 4.4%, above the expected 4.3%, and wage growth was slightly higher at 3.8%. 

This data reduced hopes for a near-term rate cut by the Fed. Spot gold fell 0.1% to $4,072.87 per ounce, while silver prices slipped 0.5% to $50.35 per ounce.

Experts said a strong US dollar also pressured precious metals. When the dollar rises, gold and silver become more expensive for buyers using other currencies, lowering demand. Global easing of tensions also added to the decline in prices.

Key Levels and Market Outlook

Jigar Trivedi, Senior Research Analyst at Reliance Securities, said gold faced weekly losses as chances of a December Fed rate cut dropped. Rahul Kalantri, VP Commodities at Mehta Equities, said gold has support at $4,032-$4,000 per ounce and resistance at $4,110-$4,140. 

Silver support is $50.10-$49.65, and resistance is $51.20-$51.50. On MCX, gold support is Rs. 1,22,050-Rs. 1,21,480, and resistance is Rs. 1,23,050-Rs. 1,23,700. Silver support is Rs. 1,53,050-Rs. 1,52,350, with resistance near Rs. 1,55,140-Rs. 1,55,980.

Today, MCX gold is around Rs. 1,22,490 per 10 grams, down about 0.46%. MCX silver futures fell over 1%, showing a bearish trend. Analysts recommend monitoring support and resistance points since the markets are still very sensitive to global economic data and the Fed's decisions.

The decline reflects strong US jobs data, a steady Fed policy, and a rising dollar. Traders should track global events and key economic indicators for short-term strategies.