Precious metals surged on Friday morning as positive global cues and rising expectations that the US Federal Reserve may avoid aggressive rate hikes boosted investor sentiment.
Gold and silver prices on the Multi Commodity Exchange (MCX) climbed as much as 2% in early trade.
MCX gold August futures rose 1.44% to ₹1,47,860 per 10 grams, while silver September contracts gained 1.80% to ₹2,37,494 per kilogram around 9:45 am.
In global markets, gold prices in the US also advanced by over 1%, heading toward their first weekly gain in five weeks.
The rally was supported by weaker-than-expected US labour market data, which reduced expectations of further monetary tightening by the Federal Reserve.
Data from ADP showed that private employment in the US rose by 98,000 jobs in June, below forecasts of 118,000.
Nonfarm payrolls also increased by just 57,000, significantly lower than the expected 110,000. In addition, payroll numbers for April and May were revised downward by a combined 74,000 jobs.
These weaker readings eased concerns that the Fed would continue hiking interest rates this year.
A softer US dollar index, which declined about 0.5% for the week, also supported bullion by making dollar-denominated gold cheaper for global buyers.
On the geopolitical front, indirect US-Iran talks concluded in Doha, though key disagreements reportedly remain unresolved, keeping some safe-haven demand intact.
Market experts noted that gold has stabilised after poor quarterly performance.
Technically, analysts highlighted key support and resistance levels. MCX gold has support at ₹1,44,400 and ₹1,43,350, with resistance at ₹1,47,100 and ₹1,48,800. Silver shows support at ₹2,33,000 and ₹2,26,600, while resistance lies at ₹2,37,700 and ₹2,41,000.
Experts also noted that gold has formed a strong base near ₹1,40,500, indicating renewed buying interest. As long as this level holds, analysts suggest a buy-on-dips strategy, with potential upside targets of ₹1,48,000 and ₹1,51,000 on sustained momentum.
