Gold and silver prices rallied in the final trading week of June and early July, posting their first weekly gains in five weeks as softer-than-expected US employment data reduced expectations for further aggressive interest rate hikes by the Federal Reserve.
Spot gold rose 1.4% to $4,179.42 per ounce by week’s end, while COMEX gold surged nearly 2% to $4,202.80 per ounce, reaching an intraday peak of $4,206.70. Silver outperformed the rally, with COMEX silver jumping 2.82% to $62.785 per ounce.
Domestic markets mirrored the global trend, with MCX gold futures for August delivery climbing ₹1,952, or 1.34%, to ₹1.47 lakh per 10 grams, and silver futures for July delivery rising ₹4,096, or 1.76%, to ₹2.37 lakh per kilogram.
The recovery followed a volatile period marked by declining prices earlier in the week. Gold initially struggled amid rising geopolitical tensions and expectations of continued monetary tightening, with spot gold dipping to around $4,057.77 per ounce and silver facing pressure below $60 per ounce.
The turning point came with the release of the US non-farm payrolls report, which revealed only 57,000 jobs were added in June—well below the anticipated 110,000. This surprised markets and pushed the probability of a September rate hike down to approximately 54% from 66% prior to the data.
The weaker dollar further supported the rally, making dollar-denominated gold cheaper for international buyers. Gold continued upward momentum on Thursday and Friday, with spot gold climbing to $4,179.42 per ounce and silver reaching $62.80 per ounce by week’s close.
Domestically, 24-carat gold in major Indian cities traded between ₹1,40,770 and ₹1,40,920 per 10 grams, while silver commanded ₹2,45,000 per kilogram in many markets.
Analysts noted that central bank buying and easing energy prices provided additional support. The World Gold Council reported that official gold reserves increased by 41 tonnes in May as central banks returned to the market.
Looking ahead, market participants are tracking the upcoming Federal Open Market Committee meeting and US inflation data for cues on the pace of monetary tightening.
