Gold Gains 4.73% Weekly as Fed Rate Hike Bets Weaken, Dollar Falls

August 8, 2026

Mumbai: Gold prices surged 4.73 per cent on a weekly basis as a weaker US dollar and softer-than-expected US labour data reduced expectations of further US Federal Reserve tightening.

On Friday, gold futures for October delivery gained 0.11 per cent, while silver futures for September advanced 0.15 per cent on the Multi Commodity Exchange (MCX).

The yellow metal stood at Rs 1,51,985 per kg, while silver was at Rs 2,31,804 per kg.

According to data published by the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold stood at Rs 1,49,621 on Friday, compared with Rs 1,42,863 at Monday’s market opening.

Gold Supported by Weaker Dollar, Lower Treasury Yields

Gold and silver benefited from declining Treasury yields and a softer US dollar, while crude oil remained volatile amid shifting headlines surrounding a potential agreement to reopen shipping through the Strait of Hormuz.

The US employment report released over the weekend showed that the US economy unexpectedly lost 23,000 jobs in July, compared with forecasts for an increase of around 80,000.

“Earlier payroll data were also revised sharply lower, with revisions to the previous two months wiping out roughly 1,03,000 jobs,” an analyst said.

The weaker labour market, along with softer ADP private payrolls and other employment indicators, reduced market expectations for a September Federal Reserve rate hike to around 44 per cent from roughly 58 per cent.

Fed Rate Expectations Boost Precious Metals

US Treasury yields fell following the employment data, with the benchmark 10-year yield easing to around 4.60 per cent from an intraday high of 4.68 per cent.

The decline in yields and the weaker dollar created a supportive backdrop for precious metals.

Gold, which had started the week under pressure as geopolitical risk premiums eased following the postponement of a planned US strike on Iran, staged a sharp reversal after the employment report and climbed to a seven-week high.

Despite the shift in interest-rate expectations, inflation remains a key risk. The Federal Reserve’s next policy move is expected to remain dependent on upcoming inflation and labour-market data.

Gold, Silver Outlook: Key Support and Resistance Levels

Commodity experts have placed immediate resistance for COMEX gold at $4,470-$4,500, while support is seen at $4,330-$4,300.

For MCX gold, immediate resistance is placed at Rs 1,52,200-Rs 1,52,800, while support lies at Rs 1,50,000-Rs 1,50,700.

Investors are closely monitoring Federal Reserve communication, Treasury yields, the US dollar and developments surrounding the Strait of Hormuz.

The July US inflation report, due in the coming week, will also be closely watched for fresh clues about the Federal Reserve’s policy trajectory.