Gold and silver prices extended their recovery rally on Friday, 3 July, as fears of an imminent interest rate hike by the US Federal Reserve eased following a softer-than-expected US jobs report. The weaker data also tempered the rally in the dollar, making dollar-denominated commodities more attractive to holders of other currencies.
Comex gold futures climbed $83 per troy ounce to an intraday high of $4,208 and were on track for a second consecutive weekly gain. Silver futures advanced $2.35 per troy ounce to $63.50.
Data released on Thursday showed that US hiring slowed sharply in June, suggesting the labour market continues to face challenges despite signs of resilience in recent months.
The US economy added just 57,000 jobs in June, the fewest in four months and well below forecasts of 110,000, while the unemployment rate stood at 4.2%. The report followed weaker-than-expected private-sector employment data released on Wednesday.
The softer labour market numbers are expected to reduce pressure on the Federal Reserve to raise rates at its July meeting. Expectations of higher borrowing costs have been a key headwind for non-yielding bullion.
Earlier this week, Federal Reserve Chair Kevin Warsh said inflation expectations and inflation risks had moderated in recent weeks, while reaffirming the central bank’s commitment to bringing inflation back to its 2% target.
As traders scaled back expectations of a near-term Fed rate hike, demand for the US dollar also weakened. The dollar index slipped below 101 in Friday’s trade and was headed for its biggest weekly decline since April.
Oil prices, a major driver of inflation in recent months, have also retreated towards pre-war levels as tanker traffic through the Strait of Hormuz has increased. Crude prices have edged lower this week following positive discussions in Qatar aimed at converting the US-Iran interim 60-day truce into a lasting peace agreement.
Meanwhile, gold ended the second quarter of 2026 with a 13.5% decline, marking its worst quarterly performance in 13 years. The metal also snapped a six-quarter winning streak, during which it had rallied 76%, after touching a record high of $5,626 in January.
MCX gold, silver extend winning run
Tracking gains in the international market, the near-month gold futures contract on the₹2,311 per 10 grams”> MCX surged ₹2,311 per 10 grams to an intraday high of ₹1,48,069, extending its winning streak to a fourth consecutive session. The rebound came after the metal ended June with an 8% decline.
“Market participants will now closely watch next week’s Federal Reserve meeting minutes for further guidance on the US interest-rate outlook and the dollar’s direction. Technically, gold is expected to trade in the ₹1,45,000–1,49,000 range, with global cues continuing to drive sentiment,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Meanwhile, the near-month silver futures contract on the MCX climbed ₹5,572 per kilogram to touch the day’s high of ₹2,38,876.
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