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Gold and silver prices were trading lower in Friday's session, as stronger-than-expected US jobs data reinforced expectations that the Federal Reserve could raise interest rates at its policy meeting next month.
On the Multi Commodity Exchange (MCX), the December gold futures contract was down ₹1,700 per 10 grams to ₹1,42,930 at the time of writing. The decline came after the yellow metal extended its gains for a second consecutive session, putting it on track to snap a three-week losing streak. Gold has gained nearly ₹4,000 so far this week.
Similarly, silver futures were down 1.26% at ₹1,84,800 per kilogram. Despite the decline, the white metal remained on track for its first weekly gain in five weeks. Silver had surged by more than ₹5,700 this week, although it remains down around ₹50,000 so far in 2026.
The US Labor Department reported on Friday that American employers added 165,000 jobs in October, more than double economists' expectations of 65,000. The figure was also significantly higher than the average monthly gain of 48,000 recorded over the preceding 12 months.
The stronger-than-expected employment data reinforced confidence in the resilience of the US economy, while raising concerns that persistent economic strength could give the Federal Reserve more room to tighten monetary policy to contain inflation.
Investors now increasingly expect the Fed to raise another 25 basis points at its December policy meeting. According to CME FedWatch data, the probability of a December rate hike climbed to 77%, up around 10 percentage points from Thursday.
Adding to signs of improving consumer confidence, the University of Michigan's consumer sentiment index rose to 51 in early November 2026, compared with 48 in October and above market expectations of 48.
The stronger economic data also boosted demand for the US dollar, which rose 0.6% to 102.2, extending its gains following October's performance. A stronger dollar makes dollar-denominated precious metals more expensive for holders of other currencies, potentially weighing on demand.
Beyond the latest employment figures, persistent inflationary pressures have also strengthened expectations that the Federal Reserve may maintain a tighter monetary policy for longer.
The US Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, increased 0.5% month-on-month in September, marking its biggest rise since March. Annual inflation accelerated to 3.6%, while core PCE inflation climbed to 3.1% year-on-year.
Similarly, the Consumer Price Index (CPI) rose 3.7% in September from a year earlier, compared with 3.4% in August. On a monthly basis, consumer prices increased 0.6% between August and September, marking their biggest gain in five months.
Meanwhile, the US economy continued to demonstrate resilience, with gross domestic product (GDP) expanding at an annualised rate of 3.4% in the third quarter, exceeding market expectations of 3.2%.
Last week, the Federal Reserve voted 10-2 last week to keep its benchmark interest rate unchanged at 3.75%-4%, giving policymakers more time to assess the impact of previous monetary tightening on economic activity and financial conditions.
However, with inflation remaining above the central bank's 2% target, the latest employment and inflation figures could complicate the outlook for interest rates and keep precious metals volatile.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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