Gold slides 3.8% as hawkish Fed stance and Iran tensions weigh on bullion

Gold prices fell sharply in the last week, losing more than ₹6,000 from their peak. On the Multi Commodity Exchange (MCX), October‑delivery gold futures dropped ₹6,157, or 3.8 %, to ₹1.56 lakh per 10 grams. Silver followed suit, with September‑contract futures falling ₹9,893, or 4 %, to ₹2.36 lakh per kilogram.

In the United States, Comex gold futures for December delivery closed the week down $150.7, or 3.2 %, at $4,680.6 per ounce, while silver fell $2.56, or 3.64 %, to $67.78 per ounce.

The decline comes as traders brace for a range of economic data next week, including manufacturing and services PMI figures from major economies, Eurozone and German inflation readings, and U.S. non‑farm payrolls. The Federal Reserve’s September policy meeting is under close scrutiny, with market participants pricing in the possibility of a rate decision.

“Profit booking intensified after the Fed Chair’s remarks on inflation and monetary policy,” said Pranav Mer, Senior Vice President of Commodity & Currency Research at JM Financial Services. The speech triggered a sell‑off that pushed gold lower.

Geopolitical uncertainty also looms. The ongoing U.S.–Iran standoff and any new developments around the Strait of Hormuz are being watched for their potential impact on oil prices and inflation expectations.

Silver, however, outperformed gold in August, rising about 21 % compared with gold’s 15.7 %. Analysts note that the combination of a strong dollar, forthcoming labor‑market data, Fed expectations and geopolitical headlines will decide whether gold stabilises or enters another phase of profit booking.

Investors will keep a close eye on the upcoming U.S. labor‑market indicators—non‑farm payrolls, unemployment and ADP employment change—as these could shape the Fed’s policy path ahead of the September meeting.