Snapping the two-day rally, gold prices dropped by Rs 431 to Rs 1.55 lakh per 10 grams in futures trade due to investor caution ahead of the US nonfarm payrolls data.
On the Multi Commodity Exchange, the yellow metal futures for October delivery declined Rs 431, or 0.28 per cent, to Rs 1,55,344 per 10 grams.
Traders said the decline was largely due to profit-taking after recent gains, while investors remained cautious ahead of the US Nonfarm Payrolls report, which could provide fresh cues on the Federal Reserve’s interest-rate outlook.
In the international markets, Comex gold futures for the December contract slipped marginally to USD 4,528.54 per ounce in New York.
“Market participants are awaiting the US nonfarm payrolls report, which could determine the next move in the dollar, treasury yields and precious metals,” said Gaurav Garg, Head of Research at brokerage platform Lemonn.