Gold Surges 4.73% on Weaker US Dollar and Lower Labor Data
Gold prices surged in India on Friday, rising by 4.73% over the past week as the US dollar weakened and lower-than-expected US labor data reduced expectations of a further US Federal Reserve tightening.
The price of gold futures for October on the Multi Commodity Exchange (MCX) gained 0.11%, while silver futures for September advanced 0.15%. Gold prices stood at Rs 1,51,985 per kg, while silver was at Rs 2,31,804 per kg.
The US employment report showed an unexpected 23,000 jobs added in July, compared to forecasts of around 80,000. The softer labor market, combined with weaker ADP private payrolls and other employment indicators, reduced market expectations for a September Fed rate hike from about 58% to around 44%.
Gold benefited from declining Treasury yields, which fell to around 4.60% from an intraday high of 4.68%. The yellow metal climbed to a seven-week high after the employment report.