Gold prices rose on Friday, July 5, hitting their highest level in a month after key U.S. jobs data showed a softening of the labor market. This raised expectations of an interest rate cut by the US Federal Reserve in September.

Spot gold rose 1.1 percent to $2,380.91 an ounce. Bullion is up more than two percent for the week so far. U.S. gold futures rose 0.8 percent to $2,389.10. Spot silver rose 2.3 percent to $31.10 an ounce and is on track for its best week since May 17.

Also read: Gold & Silver Rates Today 05-07-2024: Check Latest Rates in Your City

Platinum rose three percent to $1,032.25 an ounce, and palladium added 0.8 percent to $1,025.75. In terms of domestic prices, gold futures last traded 0.93% higher. 73,038 per 10 grams on the Multi Commodity Exchange (MCX).

Gold at one-month high: What’s pushing the yellow metal?

– Analysts say gold is trading at a one-month high as lower wage revisions and another rise in the unemployment rate helped ‘cement’ September’s rate cut. Is. Bulls are looking for a return to the all-time high of $2,450 if the Fed hints at an open in September.

– Data showed U.S. nonfarm payrolls rose by 206,000 jobs in June, slightly more than estimates. The job gain estimate for May was revised down to 218,000 from 272,000, while April’s job gain was revised down to 108,000 from 165,000 previously.

Also read: Gold Price Today: Prices Rise Minutes Ahead of Last Fed Meeting; What should be your strategy for MCX Gold?

-The unemployment rate rose to 4.1 percent, slightly above estimates of four percent. After the data, US interest rate futures reflected continued market confidence in a September rate cut, with the implied probability hovering around 72 percent.

– Traders are also pricing in the growing possibility of a second rate cut in December. Low rates reduce the opportunity cost of holding unproductive gold. The dollar fell to a three-week low against rivals, making gold less expensive for other currency holders, while yields on the benchmark US 10-year Treasury note fell.

Also read: Why gold outperformed the Indian stock market in H1-CY24? Explained with three main reasons.

Where is gold going?

Comex gold extended gains amid growing bets that the Federal Reserve will cut interest rates before the end of the year after poor U.S. economic data, analysts said. According to Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, swaps traders are now pricing in a 70 percent chance of a rate cut in September.

Jatin Trivedi, VP Research Analyst – Commodities and Currencies, LKP Securities, said support for gold 72,100 and at resistance 73,100.

“We expect gold and silver to maintain their bullish momentum in the coming sessions. Gold has support at $2,342-$2,326 and resistance at $2,378-$2,391. Silver has support at $30.28-$30.10 and resistance at $30.74-$30.92. In INR, gold is supported. 72,070- 71,910 and at resistance 72,620- 71,810. Silver has support. 89,440- 88,880 and at resistance 90,740- 91,220,” said Rahul Kalantari, VP Commodities, Mehta Equities.

abandonment: The opinions and recommendations provided in this analysis are those of individual analysts or brokerage firms, and not of Minutes. We strongly advise investors to consult certified professionals before making any investment decision, as market conditions can change rapidly and individual circumstances may vary.

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