Gold prices in India fell over 1 percent on the Multi Commodity Exchange (MCX) Monday after a sharp decline in international spot prices as strong economic data from the US and a spike in dollar dented safe-haven appeal for the yellow metal, analysts said. Silver prices also slumped 2 percent.

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At 10:25 am, gold futures for October delivery fell 1.24 percent, or by Rs 579, to Rs 46,061 per 10 grams as against the previous close of Rs 46,640 and opening price of Rs 46,311 on the MCX. Silver futures traded 1.88 percent, or Rs 1,224, lower at Rs 63,776 per kg. The prices opened at Rs 64,710 as compared to the previous close of Rs 65,000 per kg.

“Gold prices declined after a strong US jobs report and a sharp spike in dollar. The crash in gold prices may also be mainly due to a massive sell order executed in a low volume environment,” said Ajay Kedia, Director, Kedia Advisory.

International gold fell as much as 4.4 percent to a more than four-month low on Monday as robust US jobs data stoked concerns of a sooner-than-expected interest rate hike, which could increase the opportunity cost of holding non-interest bearing bullion, said a Reuters report.

Spot gold was down 1.4 percent at $1,738.53 per ounce, paring earlier losses. Prices touched $1,684.37, their lowest since March 31 earlier in the session, triggered by stop-loss selling. US gold futures slipped 1.4 percent to $1,739.00.

Silver slumped as much as 7.5 percent hitting a more than the eight-month low of $22.50 per ounce earlier in the session. It was last down 1.9 percent.

Data from the US Labor Department showed US employers hired the most workers in nearly a year in July and continued to raise wages.

The data helped lift the benchmark US 10-year Treasury yields, hurting gold’s appeal as an inflation hedge. The dollar index hit a two-week high on Monday.

“The trend in gold prices remains negative. On MCX, support for gold is seen at Rs 45,780 and resistance at Rs 46,500. Silver may find support at Rs 62,800 and resistance at Rs 64,600,” Kedia added.

Meanwhile, holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell to 1,025.28 tonnes on Friday, from 1,027.61 tonnes on Thursday.

Further, strength in the domestic equity market, with both the benchmarks Sensex and Nifty trading near lifetime highs, also dented appeal for the safe-haven metal.

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