Monday, July 15, 2024

Today’s Gold Prices Surge to One-Month High as US Fed Rate Cut Hopes Renewed; Silver Rises 3%

Gold Prices Surge to One-Month High on Expectations of Fed Rate Cut

Gold prices surged to a one-month high on Friday, July 5, as the latest US jobs data indicated a softening labor market, boosting expectations of an interest rate cut by the US Federal Reserve in September. Spot gold shot up 1.1% to $2,380.91 per ounce, with bullion up over two percent for the week. US gold futures also rose by 0.8% to $2,389.10.

Silver prices also saw significant gains, rising by 2.3% to $31.10 per ounce. Platinum and palladium prices also increased, with platinum up three percent to $1,032.25 per ounce and palladium gaining 0.8% to $1,025.75. In domestic markets, gold futures traded 0.93% higher at ₹73,038 per 10 grams on the Multi-Commodity Exchange (MCX).

Analysts pointed to the lower payroll revisions and an increase in the unemployment rate as factors driving the surge in gold prices. The data from the US showed mixed results, with non-farm payrolls growing by 206,000 jobs in June, while estimated job growth for previous months was revised down.

The unemployment rate also rose to 4.1%, slightly higher than estimates, further fueling expectations of a rate cut by the Federal Reserve in September. Traders are now pricing in a 70% chance of a rate cut, with the potential for a second cut in December. This has led to a decline in the dollar against other currencies, making gold more attractive to investors.

Overall, analysts predict that gold prices will continue to rise in the coming sessions, with support levels around $2,342-$2,326 and resistance at $2,378-$2,391. Silver is also expected to maintain its bullish momentum, with support levels at $30.28-$30.10 and resistance at $30.74-$30.92. In INR, gold has support at ₹72,070-₹71,910 and resistance at ₹72,620-₹71,810, while silver has support at ₹89,440-₹88,880 and resistance at ₹90,740-₹91,220.

Investors are advised to consult with experts before making any investment decisions as market conditions can change rapidly.

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