Gold Price Today, August 7: Gold prices were little changed on Friday (August 7) but remained on track to post a modest weekly gain, as easing geopolitical tensions in the Middle East and softer-than-expected US economic data supported bullion.
As of 5:55 a.m. IST, spot gold was trading nearly flat at around USD 4,240 per ounce. Despite the muted movement on Friday, the precious metal was on course to end the week with gains of about 5 per cent.
Spot silver edged lower to USD 61.41 per ounce, although the white metal was also headed for a weekly gain of more than 6 per cent.
Why are gold prices higher this week?
1. Easing geopolitical tensions
Gold found support earlier this week as optimism over easing tensions between the US and Iran helped improve the broader market outlook and reduced inflation concerns.
In the latest geopolitical developments, US President Donald Trump said he was “extremely happy” with Defense Secretary Pete Hegseth and defended the military campaign against Iran, saying it was “going very well.” He also indicated that the conflict could end “pretty soon.”
While easing geopolitical risks typically reduce safe-haven demand for gold, the accompanying decline in inflation expectations and bond yields has provided support to bullion.
2. Sharp decline in crude oil prices
Crude oil prices have fallen sharply this week, declining more than 7 per cent as concerns over supply disruptions in the Middle East eased. Oil briefly slipped below USD 80 per barrel during the week before recovering to trade above USD 83 per barrel.
Lower crude oil prices help ease inflationary pressures, reducing the need for aggressive interest rate hikes by central banks. That creates a relatively favourable backdrop for non-yielding assets such as gold.
3. Softer US economic data
Weaker-than-expected US economic data also boosted sentiment for bullion.
The ADP National Employment Report released on Wednesday showed that US private payrolls increased by 44,000 jobs in July, well below market expectations and following a downwardly revised increase of 95,000 jobs in June.
The weaker labour market data strengthened expectations that the US Federal Reserve could adopt a less hawkish policy stance, supporting gold prices by lowering expectations of higher interest rates.
However, the latest weekly jobless claims data offered a contrasting signal. Initial jobless claims fell to 199,000, below economists’ expectations of 205,000, indicating that the labour market remains resilient. A stronger labour market could support a “higher-for-longer” interest rate outlook, which is generally negative for gold.
Gold Price Outlook
Motilal Oswal has highlighted gold’s outlook in the second half of 2026. As per the brokerage, bullion will be driven more by inflation, US economic data and interest rate expectations than geopolitical tensions.
The brokerage expects near-term volatility amid uncertainty over Federal Reserve policy and the Middle East. It recommends a staggered accumulation strategy for long-term investors, warning that gold could correct 6-8 per cent before resuming its uptrend. It sees gold targeting USD 4,800 and later USD 5,500+ over the next 12-15 months, while projecting MCX gold to reach Rs 1,68,000 and later Rs 1,93,000 per 10 grams.
What’s next for gold?
Investors will now closely watch the US non-farm payrolls report due later on Friday for fresh clues on the Federal Reserve’s interest rate path. Market participants will also monitor further developments in the Middle East, which could influence risk sentiment.
Looking ahead to next week, attention will shift to the latest US inflation data, which is expected to provide further direction for bullion prices and the Fed’s monetary policy outlook.
