Gold Silver Rates Today Rally Strongly; How US Nonfarm Payroll Data Will Impact Precious Metals?

Gold rates and silver rates in India witnessed a huge rally on August 7, as all eyes pins at the upcoming US nonfarm payroll report scheduled later on Friday. MCX gold crossed Rs 1.50 lakh, while spot gold traded 1% higher. MCX silver price and spot silver skyrocketed by 3-4%. In terms of physical rates, 24 carat, 22 carat and 18 carat gold prices jumped as high as Rs 1,200 to Rs 1,600 in majority cities. On the other hand, physical silver prices are unchanged, with 999 purity white metal priced at Rs 2.40 lakh per Kg. Market is awaiting US July jobs data for assessing further US Federal Reserve's actions in monetary policy. As of now, street expectation is of 25 basis points hike in September amidst inflationary pressures stemming from West Asia conflict.

Investors awaited the closely watched US jobs report for fresh clues on labor market conditions and the outlook for Federal Reserve monetary policy. Markets remain divided over whether the US central bank will raise interest rates in September, although Fed officials have increasingly signaled a willingness to tighten policy soon amid mounting inflationary pressures, as per Trading Economics.

Gold Rates In India Today

24 carat gold price soared by Rs 1,600 to Rs 14,98,900 per 100 grams and edged higher by Rs 160 to Rs 1,49,890 per 10 grams. While 22 carat gold rate jumped by Rs 1,500 to Rs 13,74,000 per 100 grams and surged by Rs 150 to Rs 1,37,400 per 10 grams. In case of 18 carat gold, 10 grams gold is up by Rs 120 to Rs 1,12,420 and 100 grams gold rose by Rs 1,200 to Rs 11,24,200.

Gram	24K	22K	18K
1	₹14,989 (+16)	₹13,740 (+15)	₹11,242 (+12)
8	₹1,19,912 (+128)	₹1,09,920 (+120)	₹89,936 (+96)
10	₹1,49,890 (+160)	₹1,37,400 (+150)	₹1,12,420 (+120)
100	₹14,98,900 (+1,600)	₹13,74,000 (+1,500)	₹11,24,200 (+1,200)

Silver Rates In India Today

On the contrary, silver prices are unchanged on August 7th. 1Kg silver stood at Rs 2.40 lakh, while 100 grams and 10 grams silver are available at RS 24,000 and Rs 2,400. Further, 8 grams silver stood at Rs 1,920 and 1 gram silver at Rs 240.

"Gld is on track for its strongest weekly performance since January, with investors awaiting the U.S. non-farm payrolls report for fresh clues on the Federal Reserve's interest-rate trajectory and the broader outlook for global financial markets," said Ponmudi R, CEO of Enrich Money.

MCX Gold Price + MCX Silver Price

MCX gold rallied but MCX silver outperformed on Friday. The MCX gold futures which is scheduled for October 5 expiry, rose by Rs 1,342 or 0.90% to trade around Rs 1,50,200 per 10 grams, at the time of writing. The bullion is near its intraday high of Rs 1,50,487 per 10 grams.

Meanwhile, MCX silver price zoomed by a whopping Rs 6,106 or 2.7% to trade around Rs 2,33,599 per 1Kg. Silver has touched an intraday high of Rs 2.34 lakh per 1Kg in the early trade.

Spot Gold Price + Spot Silver Price

Spot gold witnessed over a 1.2% uptrend to trade around $4,290 per ounce after hitting the $4,300 mark in the early trade. While spot silver skyrocketed by nearly 4% to trade around $64 per ounce.

"Gold prices traded above $4,200 per ounce on COMEX, while MCX gold gained around 1%, supported by a softer dollar and safe-haven demand amid renewed Strait of Hormuz tensions," said Pinky Yadav, Commodity Fundamental Analyst at Choice Broking.

How US Nonfarm Payroll Data Will Impact Gold & Silver Prices?

The US nonfarm payroll data for July will be released in the evening of August 7th, which set the tone for global market especially safe haven assets.

"We forecast nonfarm payrolls at +70k, the unemployment rate unchanged at 4.2%, and average hourly earnings at +0.3% m/m s.a. Most leading data still point towards solid labour market conditions, although weak labour supply growth also weighs on the employment growth outlook. The unemployment rate remains the Fed's primary focus. The Fed's Barkin (non-voter, neutral) will be on the wires after the release," said a report of Danske Bank.

Capital Economics analysts also expect US non-farm payrolls data to come around 90,000 in July, but the risks lie in the unemployment rate ticking back up to 4.3%.

Furthermore, economists at ING in a note said, "Our macro team's call is 70k for July's payrolls today, a tad below the 80k consensus. We expect a modest rise in unemployment to 4.3% on a higher participation rate (consensus is 4.2%). This scenario could result in a slightly softer dollar, but should not drastically change markets' conviction levels about the September FOMC. A decisive break in the dollar may have to wait for next week's CPI release."

How the data will impact gold and silver? In Choice's analysts view, prices are expected to remain range-bound as investors await US July jobs data and assess its implications for Fed policy. Markets are pricing a 25-basis-point rate hike in September amid persistent inflation risks. Meanwhile, Chinese institutional investors increased gold-backed positions, supported by central bank buying and increasing in consumption.

Lastly, Trading Economics data said, investors also continued to monitor developments in the Middle East, as renewed tensions in the Strait of Hormuz pushed oil prices higher, reviving concerns about inflation and the prospect of near-term rate hikes. Elsewhere, data from clearing institutions showed that institutional investors in China continued to build long positions in gold-backed assets as a hedge against volatility in technology stocks, with demand also supported by continued central bank buying.

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