Gold Prices Surge 4.73% as US Rate Hike Odds Weaken

Gold prices surged 4.73 per cent on a weekly basis as the US Dollar weakened and weaker-than-expected US labour data cut the odds of further US Federal Reserve tightening.

The price of gold futures (October) gained 0.11 per cent while silver futures (September) advanced 0.15 per cent on the Multi Commodity Exchange (MCX). The yellow metal stood at Rs 1,51,985, while the white metal was at Rs 2,31,804 per kg.

The softer labour picture, together with weaker ADP private payrolls and other employment indicators, trimmed market expectations for a September Fed rate hike to about 44 per cent from roughly 58 per cent. Treasury yields fell in response, with the benchmark 10-year yield easing to around 4.60 per cent.

The July US inflation report, due in the coming week, will be closely watched for fresh clues on the Federal Reserve's policy trajectory.