Gold rises over 1% while silver gains after weak US jobs data weakens the dollar and eases expectations of further US Federal Reserve rate hikes.
Key Highlights:
- Gold surged over 1% after weaker-than-expected US jobs data.
- Bullion is on track for its first weekly gain in five weeks.
- A weaker US dollar boosted demand for precious metals.
- Silver, platinum, and palladium also traded higher.
- Central banks resumed net gold purchases in May, according to the World Gold Council.
- Softer Fed rate hike expectations supported gold prices globally.
New Delhi, July 3: Gold prices climbed sharply on Friday, rising more than 1% after weaker-than-expected US employment data reduced expectations of further interest rate hikes by the US Federal Reserve.
The weaker jobs report pushed the US dollar lower, making dollar-denominated precious metals more affordable for overseas buyers and boosting global demand for gold.
Spot gold touched its highest level since June 23 and is now on track to record its first weekly gain in five weeks. US gold futures also advanced as investors shifted toward safe-haven assets amid changing monetary policy expectations.
Silver joined the rally, gaining alongside platinum and palladium, with all three metals heading for weekly gains. The broader recovery in precious metals reflects improving investor sentiment after recent market weakness.
Additional support came from fresh data released by the World Gold Council, which showed that central banks resumed net gold purchases in May, reinforcing long-term demand for the yellow metal.
In India, bullion prices also remained firm. Gold rates strengthened across major cities, while silver prices moved higher in line with global trends.
Market participants will now closely monitor upcoming US economic data and Federal Reserve commentary for further clues on the future interest rate path, which is expected to remain a key driver of precious metal prices.
