Gold, Silver Price Today, July 6: Gold prices continued their upward momentum on Monday, July 6, extending gains for a fourth consecutive session, supported by easing inflation concerns and renewed optimism around US-Iran geopolitical developments. Silver prices also moved higher, tracking the broader strength in the bullion market.
International gold rates hits multi-week high
As of 6:40 AM, spot gold rose 0.1 per cent (around USD 5) to trade near USD 4,180 per ounce, marking its highest level since June 23. The sustained rally reflects improving investor sentiment amid expectations of a more accommodative US monetary policy outlook.
Mirroring gold’s strength, silver prices gained 0.2 per cent to trade at approximately USD 62.57 per ounce, indicating broad-based support across precious metals.
Gold, silver rates on MCX
On the domestic front, gold prices settled at Rs 1,47,365 per 10 grams in the previous session, while silver on the Multi Commodity Exchange (MCX) closed at Rs 2,37,499 per kg on July 3.
US labour data signals cooling economy, boosts gold appeal
Recent US economic data released on Thursday showed a sharp slowdown in job growth for June, along with downward revisions for the previous two months. The figures point to a cooling labour market, prompting markets to reassess expectations for near-term Federal Reserve rate hikes.
According to the CME FedWatch Tool, the probability of further rate increases has dropped below 50 per cent, down from over 60 per cent earlier. This shift is typically supportive for gold, as lower interest rates reduce the opportunity cost of holding non-yielding assets like bullion.
Gold prices tend to move inversely with interest rates. Higher rates strengthen yield-bearing assets, reducing gold’s appeal, while lower rates enhance demand for safe-haven assets like gold due to reduced opportunity costs.
Geopolitical factors on investors’ watch
Investor sentiment is also being influenced by ongoing geopolitical developments. Talks between the US and Iran are expected to continue, with Qatar acting as a mediator following the funeral of Iran’s Supreme Leader, Ayatollah Ali Khamenei.
Key US data to watch this week
Markets are now focused on a series of high-impact US economic indicators that could influence gold price direction in the near term, including:
- US trade balance data (Tuesday)
- Federal Reserve FOMC meeting minutes (Wednesday)
- Initial jobless claims data
These releases are expected to provide further insight into the health of the US economy and potential monetary policy direction.
India and China physical demand trends
On the physical demand side, gold buying in India eased on Friday after a brief pickup earlier in the week, as prices rebounded from a three-month low. Meanwhile, China witnessed a slight improvement in gold buying interest, according to Reuters reports.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
