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Gold and Silver Rise as Dollar, Bond Yields Ease
Gold and silver prices went up on Thursday.
Prices rose in India’s MCX market as the US dollar became weaker.
Lower US bond yields also made gold more attractive to investors.
Gold is often viewed as a safer place to keep money during uncertain times.
A report showed that private employers in the United States added a moderate number of jobs in August.
Investors are now waiting for a larger jobs report on Friday.
That report may offer clues about what the US Federal Reserve will do with interest rates.
Comments about the Iran strikes possibly being short-lived also reduced concerns about a long energy and inflation shock.
MCX gold October futures rose 0.75% to ₹1,53,542 per 10 grams around 9:15 AM on Thursday, 3 September.
MCX silver December contracts gained 0.88% to ₹2,38,340 per kilogram during morning trading.
US gold futures for December delivery increased 1% to $4,473.21 per troy ounce.
A weaker US dollar and easing 10-year bond yields improved gold’s appeal as a safe-haven asset.
Investors are awaiting Friday’s US nonfarm payrolls report for clues about the Federal Reserve’s next policy move.
- Who
- Gold and silver investors, the Multi Commodity Exchange of India Limited, and the US Federal Reserve are central to the report; Ravi Singh of Master Capital Services provided market commentary.
- What
- Gold and silver prices rose by up to about 1% as the US dollar and US bond yields declined.
- Where
- The price moves were reported on India’s Multi Commodity Exchange of India Limited, alongside moves in US markets.
- When
- Thursday, 3 September, with prices reported around 9:15 AM; US nonfarm payrolls data is due Friday.
- Why
- Easing US dollar and 10-year bond yields supported gold, while investors also awaited US employment data and further clues about Federal Reserve policy.
Key facts
- MCX gold price
- October futures rose 0.75% to ₹1,53,542 per 10 grams.
- MCX silver price
- December contracts rose 0.88% to ₹2,38,340 per kilogram.
- US gold futures
- December futures gained 1% to $4,473.21 per troy ounce.
- Market timing
- MCX prices were reported around 9:15 AM on Thursday, 3 September.
- Key upcoming data
- US nonfarm payrolls data is due on Friday.
- Recent employment data
- The ADP National Employment Report showed US private payrolls increased moderately in August.
- Market factors
- The US dollar and 10-year bond yields eased, supporting gold prices.
Quotes
Ravi Singh
Chief Research Officer at Master Capital Services
“Trump’s indication that the latest strikes on Iran could be short-lived has also reduced fears of a prolonged energy shock, slowing the oil rally and easing inflation concerns. At the same time, softer US inflation signals and weaker August private payroll growth have tempered expectations of aggressive Fed tightening. Markets are now turning their attention to the upcoming US payrolls data, which could provide the next major trigger for gold”
livemint.com
Sources
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