Gold Prices Jump By Rs 1,800 To Rs 1,54,000 On MCX; Silver Trades Above Rs 3,200: Four Key Reasons

Gold and silver prices surged in morning trade on the Multi Commodity Exchange on Thursday, Sept. 3, extending the rebound from the previous session. Investors are tracking the sharp recovery in bullion after recent selling, with a weaker US dollar, easing Treasury yields and softer US employment data supporting precious metals.

Gold Price Today: October Futures Over Rs 1.54 Lakh

MCX gold futures for October expiry were trading at Rs 1,54,25 per 10 grams as of 10:20 am on Thursday. The contract was up Rs 1,823, or 1.2%, from Wednesday's close of Rs 1,52,402.

The latest rise follows a recovery from the previous session. Gold had opened at Rs 1,50,033 on Sept. 2 and touched a high of Rs 1,52,855 before settling at Rs 1,52,402.

Over the past few sessions, the October contract declined to Rs 1,51,729 on Sept. 1, from Rs 1,58,996 on Aug. 27. It had therefore seen a sharp correction before Thursday's rebound.

Silver Price Today: December Futures Jump Over Rs 3,200

Silver futures also saw strong buying. MCX silver for December expiry was trading at Rs 2,39,479 per kg, up Rs 3,213, or 1.36%, from the previous close of Rs 2,36,266.

Silver had opened at Rs 2,32,536 on Sept. 2 and touched Rs 2,37,389 before closing at Rs 2,36,266.

Similar to the yellow metal, Silver also declined over the past few sessions before today's rebound. The white metal closed at Rs 2,47,809 on Aug. 27, from which it declined to Rs 2,35,441 on Sept. 1.

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Why Are Gold And Silver Prices Rising Today?

• The latest rally in global bullion markets has been supported by a weaker US dollar and softer Treasury yields. A weaker dollar makes dollar-denominated gold more affordable for buyers holding other currencies, while lower yields reduce the opportunity cost of holding non-yielding assets such as gold.
• US employment data has also provided some support. The ADP report showed that private-sector payrolls increased by just 38,000 in August, adding to expectations that the US labour market may be losing momentum. Markets are now awaiting Friday's nonfarm payrolls report for further clues on the Federal Reserve's interest-rate path.
• Expectations around the Fed remain crucial. Markets are still pricing a sizeable probability of a September rate hike, but any further signs of weakness in the US economy could reduce those bets and provide another boost to bullion.
• Geopolitical uncertainty surrounding the US-Iran conflict is another factor keeping safe-haven demand in focus, although its impact is being weighed against the inflationary pressure from elevated oil prices. For now, Friday's US jobs report, the dollar, and Treasury yields remain the key triggers for the next move in MCX gold and silver.

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