Gold prices
in India crashed to a four-month low on Monday. Gold futures fell 1.3% or Rs
600 on MCX to Rs 46,029 per 10 grams of the metal. Silver prices too continued
to skid going down 1.6% or Rs 1,000 to Rs 63, 983 per kg.

This is a
continuation of the trend in the previous session when gold and silver prices
plunged Rs1,000 and Rs2,000 respectively.

The
crashing of gold prices in India is part of a global trend as gold rates
slumped by as much as 4.4% in international markets. Experts attribute this
fall at a time when better-than-expected US jobs data fueled fears that the
Federal Reserve would raise rates quicker than expected.

Also Read | Sovereign Gold Bonds: RBI issues fifth tranche priced at Rs 4,790 per bond

Spot gold
went down 2.3% to $1,722.06 per ounce after it touched $1,684.37 earlier this
session. Silver fell 2.6% at $23.70 after falling 7.5% earlier in the session.

The US jobs
data, released on Friday, showed that US employers hired most workers in July
and continued to raise wages. The data boosted the dollar and benchmark US.

Gold prices
have been under pressure this month on investor concern as an improving US
economy and rising inflation will spur the Fed back on unprecedented economic
support, reports Mint.

The US
Labor Department said on Friday that non-agriculture related payrolls rose by
943,000 jobs in July.

Fed officials
earlier said that they expected a reduction in the central bank’s purchases of
Treasuries and mortgage-backed securities if job gains accelerated, and they
have.

In India,
the Reserve Bank issued the fifth tranche of the Sovereign Gold Scheme on
Monday. The issue price of the bond has been kept at Rs 4,790 per gram. This
price is based on the average closing price of gold by the Indian Bullion and
Jewellers of Gold. The deadline for investment in sovereign gold bonds is
August 13.