Gold and silver prices opened lower in the domestic futures market on Monday, September 8, 2025, as traders booked profits at higher levels. The decline in bullion rates came amid a rebound in the US dollar index and renewed volatility in global markets ahead of the US Federal Reserve policy meeting.
According to market experts, the week ahead may witness sharp fluctuations in gold and silver prices as investors track developments related to the dollar, rupee movement, and tariff uncertainties in international trade.
Gold Price Today: MCX Futures Open Lower
- MCX Gold October futures were trading 0.47% down at ₹1,07,219 per 10 grams around 9:05 am.
- MCX Silver December futures also slipped 0.51% to ₹1,24,058 per kg.
- Profit booking at higher levels weighed on domestic bullion contracts.
The global uptick in the US dollar exerted downward pressure on precious metals, which often move inversely to the greenback. Traders reduced their long positions ahead of the Fed’s policy decision, leading to a correction in prices.
Why Are Gold and Silver Prices Falling Today?
1. Profit Booking at Higher Levels
Gold prices had rallied in recent sessions, encouraging traders to lock in profits at elevated levels. This selling pressure contributed to the early weakness in bullion.
2. Dollar Index Gains
The US dollar index rebounded, making gold less attractive for investors holding other currencies. Since gold is a dollar-denominated asset, a stronger dollar often leads to weakness in bullion.
3. Federal Reserve’s Policy Outlook
Market participants are closely watching the Federal Reserve meeting, scheduled this month. Expectations are tilted towards a 25 basis point rate cut, but persistent inflation concerns may limit aggressive policy easing.
4. Mixed US Economic Data
While the US job market shows signs of weakness, the data is not soft enough to justify a 50 bps rate cut. This uncertainty is keeping investors cautious, leading to volatility in gold prices.
Experts’ View on Gold and Silver
Manoj Kumar Jain, Prithvifinmart Commodity Research
“Gold and silver prices are expected to remain highly volatile this week due to fluctuations in the dollar index, rupee movement, and uncertainty around US trade tariffs. Investors should adopt a cautious trading strategy and closely monitor support and resistance levels,” said Jain.
Roach on Fed Policy
“As the Fed prepares for its meeting, policymakers will likely emphasize weakness in the job market to defend a rate cut decision. However, given persistent inflation, a 50 bps cut looks unlikely. Our expectation remains for a 25 bps cut,” Roach noted.
Key MCX Levels to Watch This Week
Gold (October Futures)
- Support levels: ₹1,06,800 – ₹1,06,500 per 10 grams
- Resistance levels: ₹1,07,800 – ₹1,08,200 per 10 grams
Silver (December Futures)
- Support levels: ₹1,23,200 – ₹1,22,500 per kg
- Resistance levels: ₹1,25,000 – ₹1,25,800 per kg
Traders are advised to keep a close watch on these technical levels as sharp movements may occur due to global cues.
Global Gold Market Update
In international markets, gold also edged lower as the dollar strengthened ahead of the US Fed policy review. Spot gold was trading slightly below $2,550 per ounce, while silver hovered around $29.40 per ounce.
Analysts highlight that despite short-term pressure, safe-haven demand may continue to support bullion in the medium term, especially if geopolitical risks or recessionary concerns intensify.
Should You Invest in Gold Now?
While gold prices have corrected from recent highs, analysts recommend a buy-on-dips strategy for long-term investors. The outlook remains supportive for bullion due to:
- Expected monetary easing by major central banks.
- Persistent inflation concerns worldwide.
- Rising geopolitical tensions that boost safe-haven demand.
- Seasonal festive and wedding demand in India, one of the world’s largest consumers of gold.
Short-term traders, however, should remain cautious and adopt a stop-loss based approach given high volatility in MCX contracts.
Silver Outlook: Industrial Demand vs Market Volatility
Silver prices, often more volatile than gold, are being influenced by:
- Weakness in base metals due to global trade uncertainty.
- Strong industrial demand from solar and electronics sectors.
- Tracking gold’s movement as both metals generally move in tandem.
Experts suggest silver may witness sharp swings but remains fundamentally supported by industrial usage trends.
Factors Influencing Gold and Silver Prices This Week
- Dollar index movement – A key driver for precious metals.
- US Fed policy outcome – Expected 25 bps cut may support bullion.
- Global economic data releases – Especially US inflation and employment numbers.
- Geopolitical tensions – Any flare-up may push safe-haven buying.
- Indian rupee fluctuations – Impact on landed cost of imports.
Takeaway
Gold and silver prices fell on September 8, 2025, as investors booked profits and the US dollar strengthened ahead of the Federal Reserve meeting. While the near-term outlook suggests volatility in bullion prices, long-term fundamentals continue to favor gold and silver as safe-haven assets.
Investors should keep a close eye on MCX support and resistance levels, global economic data, and Fed policy updates to make informed trading and investment decisions.
