Gold Prices Jump 4.8% This Week to 7-Week High as Oil Falls on Iran Peace Hopes | Commodity Markets Today
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Gold prices are up 4.8% this week and remain near a seven-week high, while silver, platinum and palladium traded lower.
Gold prices were largely steady on Friday, August 7, but remained on track for their biggest weekly gain since January, supported by lower crude oil prices and expectations that easing inflation pressures could give the US Federal Reserve more room to cut interest rates.
Spot gold was little changed at $4,235.57 per ounce as of 12:15 am IST, but was up 4.8% for the week. US gold futures fell 0.1% to $4,293.80 an ounce.
Why Are Gold Prices Rising?
Gold has gained as investors reassessed the outlook for US interest rates following recent economic developments.
Lower oil prices are helping to ease concerns over energy-led inflation. This could reduce pressure on central banks to maintain tighter monetary policy. Gold generally benefits from lower interest rates because it does not pay interest or dividends.
The precious metal has also remained supported by geopolitical uncertainty. US President Donald Trump said on Thursday that he believed the war with Iran would end soon, while also pointing to supply issues involving some weapons.
US Jobs Data in Focus
The next major trigger for gold prices is the US non-farm payrolls report for July, due later on Friday.
The data is being closely watched for clues on the Federal Reserve's next interest-rate decision. A weaker jobs reading could strengthen expectations of a rate cut and support gold, while stronger employment data could reinforce the case for keeping rates higher for longer.
The Federal Reserve left its interest-rate target range unchanged at 3.5%-3.75% at its July 29 meeting, despite inflation remaining above its 2% target.
Gold, Silver Prices Today
Among other precious metals, spot silver fell 0.4% to $61.26 an ounce on Friday. Platinum declined 0.5% to $1,720.75 an ounce, while palladium also fell 0.5% to $1,363.50.
Silver has also remained sensitive to expectations around interest rates, while its industrial demand outlook continues to be an important factor for prices.
What Could Drive Gold Prices Next?
The US jobs report will be the immediate focus for bullion traders.
A stronger-than-expected payrolls number could lift the US dollar and Treasury yields, potentially putting pressure on gold. A weaker reading could have the opposite effect by strengthening expectations of lower interest rates.
Investors will also track crude oil prices, US Treasury yields, the dollar and developments in the Middle East for further direction.
Lower oil prices remain supportive for gold as they reduce the risk of another rise in energy-driven inflation. However, any fresh escalation in the US-Iran conflict could bring safe-haven demand back into focus.
Technical Outlook
According to Kotak Neo Commodity Research, MCX Gold (October) is expected to trade with a sideways bias in the ₹1,48,025-₹1,50,310 per 10 grams range. The technical setup suggests that traders could see range-bound movement in the near term, with the precious metal remaining sensitive to movements in the US dollar, Treasury yields and geopolitical developments.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, visit www.kotakneo.com/disclaimer
Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
Outside work, she enjoys travelling, discovering local cultures and spending time in nature.
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