Gold Prices Soar as Weakened Rate Hike Bets Boost Bullion

Gold prices have surged 4.73% on a weekly basis due to weakening US Federal Reserve tightening bets and a softer US dollar. The yellow metal reached Rs 1,51,985 per kg, while silver futures advanced 0.15%. This gain comes after the employment report showed an unexpected 23,000 jobs added in July, compared to forecasts of about 80,000.

The softening labour picture and weaker ADP private payrolls trimmed market expectations for a September Fed rate hike from 58% to around 44%. Treasury yields fell in response, with the benchmark 10-year yield easing to around 4.60% from an intraday high of 4.68%, creating a supportive backdrop for precious metals.

Gold had started the week under pressure as geopolitical risk premiums eased following the postponement of a planned US strike on Iran, but staged a sharp reversal after the employment report, climbing to a seven-week high. Immediate resistance is placed at Rs 1,52,200-Rs 1,52,800 for MCX gold, while support lies at Rs 1,50,000-Rs 1,50,700.

Investors closely monitor Federal Reserve communication, Treasury yields, the US dollar, and developments surrounding the Strait of Hormuz. The July US inflation report will be closely watched for fresh clues on the Federal Reserve's policy trajectory.