Gold Prices Surge by Rs 6,400/10g and Silver Soars by Rs 11,502/kg as Peace Deal Hopes Ignite Market Rally!
Gold and silver prices exhibited positive momentum at the Multi Commodity Exchange (MCX) on Friday, largely influenced by a decline in oil prices throughout the week and the anticipation surrounding the U.S. nonfarm payrolls report. Specifically, MCX silver futures for September 2026 saw an increase of Rs 2,864, reaching Rs 2,28,700 per kg, while gold futures for October 2026 rose by Rs 866 to Rs 1,49,724 per 10 grams. This upward trend has resulted in gains of Rs 11,016 (5.2%) for gold and Rs 6,335 (4.4%) for silver over the past three sessions, underscoring a significant recovery amid fluctuating market conditions.
The geopolitical landscape is also impacting market sentiments. U.S. President Trump’s comments highlighting a potential resolution to the conflict with Iran and the military’s equipment shortages should be noted, as these factors can influence safe-haven asset demand. Concurrently, the decline in crude oil prices alleviates some inflationary pressures, potentially moderating expectations for prolonged high interest rates. Historically, gold is sought as an inflation hedge; however, increased interest rates pose risks to its attractiveness due to the absence of yield.
Market participants are acutely focused on the imminent release of the U.S. Labor Department’s nonfarm payrolls report, which is likely to offer fresh insights into the Federal Reserve’s interest rate strategy. Currently, there is a 55% likelihood of a rate hike in September, a decrease from 63% in the previous week, as reported by the CME FedWatch Tool. Noteworthy international price movements include spot gold increasing by 0.4% to $4,254.11 per ounce, while spot silver gained 0.8% to $61.96 per ounce this week, further signaling a favorable shift in investor sentiment towards precious metals.
Looking ahead, analysts suggest cautious trading strategies. Support levels for gold are observed at $4,264-$4,220 and resistance at $4,340-$4,378, while silver shows support at $60.60-$59.40 and resistance at $62.80-$64.00 per troy ounce. In the Indian market, gold support is seen at Rs 1,48,000-Rs 1,47,200 and resistance at Rs 1,49,550-Rs 1,50,150, while silver’s support levels are Rs 2,24,000-Rs 2,21,200 and resistance at Rs 2,28,000-Rs 2,30,500. Recommendations for tactical trading suggest booking profits on long positions in gold ahead of the employment data and exercising caution in silver market entry pending further price confirmation.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)