Gold Surges 4.73% on Weak US Labour Data, Weaker Dollar
Gold prices surged 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 yellow metal rose 4.73% to Rs 1,51,985 per kg, while silver futures advanced 0.15% to Rs 2,31,804 per kg on the Multi Commodity Exchange (MCX).
The price of 10 grams of 24-carat gold was at Rs 1,49,621 on Friday, up from Rs 1,42,863 seen on Monday at market opening. The strong performance of gold and silver was driven by declining Treasury yields and a softer US dollar.
US employment data for July showed the economy unexpectedly lost 23,000 jobs, compared to forecasts for an increase of about 80,000. Analysts noted that earlier payroll data were also revised sharply lower, with revisions to the previous two months wiping out roughly 103,000 jobs.
The softer labour picture trimmed market expectations for a September Fed rate hike from 58% to about 44%. Treasury yields fell in response, creating a supportive backdrop for precious metals. Gold staged a sharp reversal after the employment report, climbing to a seven-week high.