Gold and Silver Crash on US Jobs Data, June 08

Gold and silver prices collapsed across India this week after the US added 172,000 jobs in May, far exceeding forecasts and killing bets on Federal Reserve rate cuts. Gold fell 3.3% to ₹1.55 lakh per 10 grams on the MCX, while silver plunged 7% to ₹2.48 lakh per kilogram. The sell-off marks the worst week in months for precious metals investors in India.

What Triggered the Selloff

The US May payrolls report landed on Friday with 172,000 new jobs, well above the expected level. Markets immediately priced out any chance of Federal Reserve rate cuts in 2026, pushing the dollar higher and gold lower. Gold fell 1.6% globally to $4,462.22 per ounce, while silver slumped 6% to as low as $68.63 per ounce intraday. Crude oil above $95 per barrel also added to inflation concerns, reinforcing the view that rates would stay higher for longer.

India Market Hit Harder Than Global Peers

India’s bullion market faced extra pressure beyond global trends. Dealers offered discounts as high as $87 per ounce due to weak physical demand. Gold exchange-traded funds saw their first monthly outflow in 12 months. On June 6, 24-carat gold traded at ₹1,55,720 in Mumbai and ₹1,55,870 in Delhi. Silver weakened sharply, dropping as much as ₹9,900 per kilogram. Goodreturns reported that 22-carat gold fell to ₹1,40,000 per 10 grams across major cities.

Weekly Losses Pile Up

The week-long decline erased significant gains. MCX gold futures fell ₹5,317 (3.3%) over the week, while silver futures dropped ₹18,461 (7%). Globally, Comex gold fell 5% to $4,365 per ounce and silver fell 9% to $69.10 per ounce. Analysts noted that efforts to impose stricter silver import restrictions failed to prevent the decline. Central bank buying of 244 tonnes in Q1 provided some support, but tactical traders grew cautious.

What Comes Next

Analysts expect volatility to continue. China’s trade data, US inflation figures, and Middle East tensions remain key triggers. The strength of the dollar and crude oil prices will also shape precious metals demand. Investors should watch for any shifts in Federal Reserve policy signals, which could reverse the recent downtrend. Physical demand in India may improve if prices stabilize at lower levels.

Final Thoughts

Gold and silver crashed this week on rate cut bets evaporating after strong US jobs data. For Indian investors, the sharp declines offer entry points if you believe rates will eventually fall, but near-term pressure from a stronger dollar remains real.

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