Gold and silver prices commenced on an upward trajectory for a second consecutive session on the Multi Commodity Exchange on Thursday, following a decline in the US dollar and a reduction in bond yields. Attention now shifts to US nonfarm payrolls data, which may impact expectations regarding the Federal Reserve’s forthcoming policy decision. In the domestic market, silver futures for September 2026 delivery increased by Rs 2,460, reaching Rs 2,38,726 per kg. Gold futures for October 2026 delivery increased by Rs 1,600, reaching Rs 1,53,995 per 10 grams. Over the course of two days, silver has appreciated by more than Rs 3,000, whereas gold has increased by Rs 2,300 per 10 grams. The highly anticipated US nonfarm payrolls report is set to be released on Friday.
Ahead of the data, the ADP National Employment Report indicated that private payrolls in the US increased at a rate below expectations in August. A mixed report released by the Federal Reserve on Wednesday indicated that US economic activity has experienced modest expansion in recent weeks, accompanied by a slight increase in employment and a moderate rise in prices. The report may offer constrained guidance to policymakers as they deliberate on the potential increase of interest rates during their meeting on September 15-16. Markets are currently reflecting a 62% probability of a US rate hike this month, as indicated by the CME FedWatch Tool. Gold is traditionally regarded as a safeguard against inflation; however, elevated interest rates heighten the opportunity cost associated with maintaining this non-yielding asset.
Geopolitical tensions continued to capture attention, as concerns grew over a potential resurgence of conflict in the Middle East following the most significant exchange of hostilities between the US and Iran since July. Washington targeted Iran’s southern coast, while Tehran initiated assaults on US bases throughout the region. Spot gold remained unchanged at $4,386.28 per ounce. Prices rebounded from a near one-month low observed in the previous session, following a retreat in the US dollar and Treasury yields from their recent peaks. US gold futures for December delivery increased by 0.4%, reaching a price of $4,432.10.
Among other precious metals, spot silver remained unchanged at $65.30 per ounce, platinum held steady at $1,760.33, while palladium experienced a slight decline of 0.1% to $1,344.48. Jigar Trivedi anticipates that MCX Gold October futures will continue to rise for a second consecutive session. He identifies Rs 1,53,000 per 10 grams as the intraday resistance level, whereas Rs 1,52,000 per 10 grams serves as the critical support. The overall outlook remains positive.
