Gold, silver prices today: Comex gold tops $4,200, silver nears $64 as recovery rally extends; Fed minutes in focus

Gold and silver prices traded with mild gains on Monday, 6 July, extending last week's sharp recovery as easing concerns over an imminent US Federal Reserve rate hike and a weaker US dollar provided much-needed support to precious metals, which had remained under pressure in recent weeks.

COMEX gold futures climbed $90 per troy ounce to an intraday high of $4,215, while silver futures advanced $2.73 per troy ounce to $63.73.

Gold ended last week 0.72% higher. While the weekly gain appeared modest, the yellow metal rebounded 4.3% from the week's low, marking its first weekly advance after four consecutive weeks of losses.

Silver, meanwhile, surged 3.11% during the week, snapping a seven-week losing streak.

Investor demand for safe-haven assets strengthened after US hiring slowed sharply in June, signalling that the labour market continues to face challenges despite showing resilience in recent months. The weaker-than-expected jobs data eased market concerns over an immediate Federal Reserve rate hike.

The softer labour market is expected to reduce pressure on the Fed to raise interest rates at its July policy meeting. Expectations of higher borrowing costs have been a major headwind for non-yielding assets such as gold.

Comments by Federal Reserve Chair Kevin Warsh last Wednesday, indicating that inflationary risks had eased, also helped calm concerns over further rate hikes. Markets are now pricing in a 56% probability of a Fed rate hike in September, down from around 64% before the release of the June jobs report.

For context, the US Personal Consumption Expenditures (PCE) Price Index—the Federal Reserve's preferred inflation gauge—rose 4.1% in the 12 months through May, broadly in line with analysts' expectations.

Oil prices, a key driver of inflation in recent months, have also retreated towards pre-conflict levels as tanker traffic through the Strait of Hormuz has increased. Crude prices ended last week lower following positive discussions in Qatar aimed at converting the US-Iran 60-day interim truce into a lasting peace agreement.

Meanwhile, the US Dollar Index rebounded during Monday's trade, climbing above the 101 mark against a basket of major currencies. However, it remained close to a three-week low after posting its biggest weekly decline since April, as the weak US jobs report weighed on the greenback.

Looking ahead, investors will closely monitor the minutes of the Federal Reserve's latest policy meeting, due on Wednesday, for fresh clues on policymakers' outlook. However, the minutes are likely to predate the recent increase in oil flows through the Strait of Hormuz, which has eased concerns over energy-driven inflation.

MCX gold, silver remain volatile

Tracking volatility in the international market, the near-month MCX gold futures contract touched an intraday high of ₹1,47,509 per 10 grams before giving up its gains to trade around ₹1,46,600. In the previous session, the yellow metal had crossed the ₹1.48 lakh mark.

The near-month MCX silver futures contract climbed to an intraday high of ₹2,37,934 per kg before easing to ₹2,35,339. The metal has now posted gains in seven consecutive trading sessions, rallying by a cumulative ₹24,335 per kg, marking one of its strongest sustained advances since mid-May.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.