Precious metals extended their winning run to a fourth straight session on Friday, 8 May, as optimism surrounding a potential US-Iran peace agreement, along with a softer US dollar, kept momentum strong. In addition, the latest stronger-than-expected US jobs report indicated that the world’s largest economy remains resilient.
Comex gold jumped $50 per troy ounce to reach the day’s high of $4,760 and is on track to end the week with a gain of around 1.5%. Silver futures advanced $2 to hit an intraday high of $82.16 per ounce. The white metal has performed even stronger, rising 5.45% so far this week.
Data showed that US employment increased more than expected in April, while the unemployment rate remained steady at 4.3%, pointing to continued resilience in the labour market.
Although hiring slowed from March levels, the increase was still nearly double economists’ expectations.
The solid payrolls report overshadowed separate data showing that consumer sentiment fell in recent weeks to a record low amid concerns about inflation’s impact on personal finances and buying conditions.
The stronger-than-expected jobs report reinforced expectations that the Federal Reserve could keep interest rates elevated for longer. However, gold prices largely shrugged off the data as traders remained focused on developments in the Middle East and hopes of a potential US-Iran peace agreement.
On the geopolitical front, Iran has still not indicated whether it will accept President Donald Trump’s proposal, sent on Wednesday, which reportedly includes reopening the Strait of Hormuz in exchange for the US ending a blockade on ports. Secretary of State Marco Rubio told reporters that Iran “should” provide an answer on Friday.
Iran said on Thursday that it was reviewing messages from the US received via Pakistani mediators, according to Iranian state media, citing an Iranian official.
Axios and several other media outlets reported earlier this week that the two countries were nearing a 14-point memorandum of understanding aimed at ending the war and resuming talks over Iran’s nuclear programme.
On Thursday, tensions resurfaced after US and Iranian forces exchanged attacks near the Strait of Hormuz, with both sides accusing each other of breaching the ceasefire. Trump reportedly said the ceasefire with Iran remained in place despite the fresh clashes, reinforcing hopes that a broader agreement could still be reached.
Gold and silver prices have fallen by more than 10% each since the conflict erupted, as the near-closure of the Strait of Hormuz and the resulting spike in energy prices have fuelled concerns about rising inflation and the possibility of interest rates remaining elevated for longer.
MCX gold gains over 1,100 per 10g; silver hovers ₹2.65 lakh
In the domestic market, the near-month MCX gold futures contract rose ₹1,179 to ₹1,53,440 per 10 grams. The yellow metal is on track to snap a two-week losing streak, having gained ₹1,145 so far this week. However, from its record high of ₹1,80,779, gold prices are still down by ₹27,339.
Silver, which is more volatile than gold, extended its winning streak to the fourth straight session, rallying ₹6,460 per kilogram to hit the day’s high of ₹2,65,000. So far this week, the white metal has added ₹10,763 to gains, building on the ₹6,300 surge recorded in the previous week.
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