Gold and Silver See Price Slump Amid Market Holidays and Economic Uncertainty

Gold prices fell over 1% due to low market liquidity with key markets in the U.S. and Asia closed for holidays. A firm dollar added pressure on bullion as mixed U.S. economic data influenced Federal Reserve interest rate expectations. Silver also saw a decline amid strong job data indications.

Gold markets experienced a noticeable dip, with prices falling more than 1% in the absence of major trading activity because of holidays in the U.S. and Asia. Spot gold registered a 1.3% drop to $4,976.37 per ounce in Monday's trading as the U.S. futures price fell similarly.

The firm dollar added to the pressure on dollar-priced bullion, making it costly for foreign currency holders. Recent mixed U.S. economic data provided a complex outlook for future Federal Reserve interest rate decisions, with subdued consumer price rises alongside unexpected job growth.

Federal Reserve Bank of Chicago President Austan Goolsbee hinted at potential interest rate reductions, though he highlighted persistent services inflation. The geopolitical landscape also saw developments, with Iran's diplomat indicating progress in nuclear discussions with the U.S., posing potential economic implications.

(With inputs from agencies.)