Gold and silver commenced trading on a positive note on MCX on Friday, as disappointing U.S. labour market data led investors to reassess their projections regarding additional interest rate increases by the Federal Reserve. In the domestic market, silver futures for September 2026 delivery increased by Rs 4,912 (2%) to reach Rs 2,38,216 per kg. Gold futures for August 2026 delivery increased by Rs 2,219, reaching Rs 1,47,977 per 10 grams. In the previous session, the two concluded with slight declines. In light of the data, traders have adjusted their expectations regarding a rate hike in September. The CME FedWatch Tool currently suggests a probability of approximately 54% for a rate increase, a decline from the previous 66% prior to the payrolls report.
Higher interest rates generally diminish the allure of non-yielding assets like gold, as they enhance the attractiveness of interest-bearing investments. Bullion was also on course for a weekly increase of 2.3%, marking its first such gain since the week of May 25. The rally followed the release of softer-than-anticipated U.S. nonfarm payrolls and private payrolls data, which alleviated worries regarding ongoing inflation and the likelihood of prolonged elevated interest rates. Data from the U.S. Labour Department’s Bureau of Labour Statistics indicated that nonfarm payrolls rose by 57,000 jobs last month, significantly underperforming relative to economists’ projections of 110,000, as per a survey.
In the international market, spot gold increased by 1.4% to $4,179.94 per ounce, following a peak not seen since June 23. U.S. gold futures for August delivery increased by 1.6%, reaching $4,193.20 per ounce. Among other precious metals, spot silver experienced an increase of 2.3%, reaching a price of $62.43 per ounce. Manoj Kumar Jain anticipates that gold and silver prices will exhibit volatility during Friday’s session, influenced by fluctuations in crude oil prices, the dollar index, and U.S. bond yields. He stated that gold has support in the range of $4,084 to $4,040 per troy ounce and resistance between $4,180 and $4,240.
Silver, meanwhile, exhibits support in the range of $59.40 to $58.00 per troy ounce, while facing resistance between $63.00 and $64.40. On the MCX, Jain indicated that gold has support levels at Rs 1,44,400 to Rs 1,43,350 and resistance levels at Rs 1,47,100 to Rs 1,48,800. Silver exhibits support levels ranging from Rs 2,33,000 to Rs 2,26,600, while resistance is observed between Rs 2,37,700 and Rs 2,41,000.