(Gold Silver Reports) Gold and Silver prices today: Positive global cues and easing expectations of aggressive rate hikes by the US Federal Reserve boosted precious metals, with gold and silver prices on the MCX jumping up to 2% on Friday, 3 July, morning.
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MCX gold August futures were 1.44% up at ₹1,47,860 per 10 grams, while MCX silver September contracts were 1.80% up at ₹2,37,494 per kg around 9:45 am.
U.S. jobs data
Gold prices in the US also climbed by more than 1%, looking set for its first weekly gain in five weeks, as softer-than-expected U.S. jobs data raised expectations that the Fed may delay rate hikes.
Meanwhile, the dollar index was also down about half a per cent for the week, making greenback-denominated gold cheaper for buyers in other currencies.
ADP’s national employment report showed that private employment in the US rose by 98,000 jobs in June, below expectations of a 1,18,000 rise.
Nonfarm payrolls increased by just 57,000 in June, below the expectations of a 1,10,000 rise. Moreover, April and May payrolls were also revised down by 74,000.
Weaker-than-expected private payrolls and nonfarm payrolls data eased concerns over potential interest rate hikes this year.
On the geopolitical front, the US and Iran concluded their indirect negotiations in Doha. However, the key bones of contention, according to reports, remain unresolved.
“Gold prices steadied after weaker-than-expected U.S. nonfarm payrolls data reduced expectations of another Federal Reserve rate hike this year, supporting bullion prices. The softer labour market data provided relief after gold posted its worst quarterly performance in 13 years,” Ravi Singh, Chief Research Officer at Master Capital Services Limited, said.
Singh, however, added that hawkish remarks from Fed officials and their commitment to the 2% inflation target continue to limit the metal’s broader upside potential.
Gold and silver: Key levels to watch
Spot gold has support at $4,070 and $3,950, while resistance is at $4,220 and $4,252 per troy ounce, and silver has support at $58 and $54, while resistance is at $64 and $66 per troy ounce in today’s session.
MCX gold has support at ₹1,43,700 and resistance at ₹1,48,900, while silver has support at ₹2,28,000 and resistance at ₹2,42,400.
MCX gold has formed a strong base near the ₹1,39,900 support zone, with the daily chart indicating a bullish reversal from lower levels. The recent recovery suggests buying interest is returning after a sharp correction, and prices are attempting to regain momentum.
“As long as ₹1,39,900 remains intact, the overall outlook remains positive, and any decline should be viewed as a buy-on-dips opportunity. On the upside, immediate resistance is placed near the 21-day EMA around ₹1,48,444, while a sustained move above this level could extend the rally towards the 55-day EMA near ₹1,50,030,” said Neal Bhai, India.
Conclusion
Gold and silver prices climbed sharply on MCX after easing expectations of a US Federal Reserve rate hike boosted investor sentiment. A weaker dollar and lower bond yields supported buying in precious metals. Going forward, traders should closely watch important technical levels along with upcoming global economic events before making trading decisions.
Frequently Asked Questions (FAQs)
1. Why did gold and silver prices rise on MCX?
Gold and silver prices increased because expectations of another US Federal Reserve rate hike weakened, making precious metals more attractive.
2. How do US interest rates affect gold prices?
Lower interest rates usually weaken the US dollar and reduce bond yields, which often supports higher gold prices.
3. Is silver expected to outperform gold?
Silver can outperform gold during periods of strong industrial demand and improving investor sentiment, but both metals remain influenced by global economic factors.
4. What should traders watch before trading gold and silver?
Traders should monitor support and resistance levels, US economic data, Federal Reserve announcements, the US dollar, and bond yields.
5. Are gold and silver good investments during uncertain markets?
Gold and silver are often considered safe-haven assets and may attract investors during periods of economic uncertainty and market volatility.
Disclaimer
This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.
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