Gold Prices Soar on Weak US Jobs Data, Silver Surges Too
Gold and silver prices surged in India's domestic futures market on Thursday due to firm demand in the spot market.
The gold contract for delivery in October rose by over Rs 1,000 (0.68%) to Rs 1,53,431 per 10 grams on the Multi Commodity Exchange (MCX), with a business turnover of 2,467 lots.
Analysts attributed this rise to fresh positions being taken by market participants and weakness in bond prices supporting bullion.
Jateen Trivedi, VP Research Analyst at LKP Securities, said the positive trend is due to softer-than-expected US Non-Farm Employment Change data increasing expectations for a more accommodative Federal Reserve stance.
Trivedi also noted that gold futures in New York fell 0.89% to US$4,420.49 per ounce, while silver prices rose nearly 0.8% to Rs 2.38 lakh per kg on the MCX due to fresh positions being taken by participants.
The analyst predicted a price range of between Rs 1,51,000 and Rs 1,55,500 for gold going forward.