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Gold prices climbed in early trade on Friday, September 5, fueled by a weaker US dollar and growing confidence that the Federal Reserve will cut interest rates later this month.
Investors closely follow the Gold Price Today to plan their buying and selling strategies. Domestic futures mirrored the global trend, as gold's demand picked up amid persistent economic uncertainty.
On the Multi Commodity Exchange (MCX), October gold futures were trading 0.28% higher at Rs 1,06,680 per 10 grams around 9:30 a.m. Silver also joined the rally, with December contracts up 0.48% at Rs 1,24,500 per kg.
Trading activity in MCX Gold Futures reflects both domestic and global market cues. Strong buying interest in the spot market added further support to bullion prices.
A strong US dollar often exerts downward pressure on gold and silver prices. A softer dollar provided the immediate boost. The dollar index fell 0.30%, making gold cheaper for overseas buyers and increasing its appeal as an alternative investment.
At the same time, expectations that the US Federal Reserve will cut interest rates by 25 basis points on September 17 strengthened after fresh macroeconomic data suggested cooling in the labor market. Lower rates reduce the opportunity cost of holding non-yielding assets, such as gold, typically pushing bullion prices higher.
Recent economic indicators have reinforced the case for monetary easing. According to the ADP National Employment Report, private payrolls in the US rose less than expected in August. Meanwhile, jobless claims climbed more than forecast, hitting a two-month high.
Alongside gold, the Silver Price Today shows volatility influenced by industrial demand. Markets are now bracing for the release of non-farm payrolls data later today, which could provide further clarity on the Fed’s policy stance.
Analysts note that weakening labor data, combined with geopolitical and trade uncertainties, is prompting investors to seek safe-haven assets.
“A drop in job openings, higher layoffs, and rising jobless claims have pushed markets to largely price in a September rate cut. Ongoing global trade tensions and concerns about Fed independence are adding to gold’s appeal,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Eric Teal, Chief Investment Officer at Comerica Wealth Management, highlighted the broader trend:
“The softer jobs market, tariff-related uncertainty, and structural changes such as AI adoption are weighing on employment. The upside is that weaker data gives policymakers more scope to introduce stimulative measures, which should support economic activity and, indirectly, gold demand.”
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Over the next few weeks, traders will closely watch the $2,000 per ounce level in global markets and key MCX support zones. If the Fed signals a dovish stance later this month, analysts believe gold could test new highs, with silver likely to follow suit.
Hopes for a Fed Rate Cut have fueled optimism in bullion and commodities markets. With monetary policy easing on the horizon and global uncertainties unresolved, bullion is expected to retain its shine as a safe-haven asset in the weeks ahead.
