Gold Rises On MCX As Middle East Tensions Flare; US Jobs Data In Focus

Gold climbed on the Multi-Commodity Exchange of India (MCX) on Friday morning, supported by healthy spot demand and positive global cues, even as a firmer dollar and rising energy prices kept a lid on gains.

Multi Commodity Exchange of India gold June futures were up 0.31% at ₹1,52,730 per 10 grams as of 10:00 AM. Silver July futures rose 0.40% to ₹2,59,500 per kg in the same session.

COMEX gold prices were up around 0.50% today and traded near $4,735 per ounce. COMEX silver also gained about 0.50% and hovered around $80.55 per ounce.

What Is Driving The Move

Fresh military exchanges in the Middle East pushed energy prices higher overnight. The US military said on Thursday it intercepted Iranian attacks targeting three Navy ships in the Strait of Hormuz and carried out retaliatory strikes on Iranian military facilities.

The development reignited safe-haven demand for gold even as it pushed the dollar index up 0.20%. A stronger dollar makes the metal more expensive for holders of other currencies, capping the upside even when geopolitical risk is elevated.

Gold has been under pressure since the US-Iran war began on 28 February, with domestic spot prices on the Multi-Commodity Exchange of India declining roughly 5% from pre-war levels as rising energy prices drove inflation concerns and reduced expectations of near-term interest rate cuts.

Higher inflation expectations would normally support gold as a hedge, but elevated interest rates work against it since the metal generates no yield. That tug-of-war has kept gold rangebound rather than trending strongly in either direction.

Also Read - Post Office Savings Schemes Offer Up To 8.2% Interest In Q1 FY 26-27

US Jobs Data The Key Watch

The market's attention on Friday is on the monthly US employment report, due later in the session. The data will give investors a clearer read on how the US Federal Reserve is likely to move on interest rates through the rest of the year.

Analysts say the undertone in international markets is positive and sees MCX gold June contracts potentially moving toward ₹1,53,000 per 10 grams if the jobs data does not throw a negative surprise.

Source:

Livemint