Gold and silver futures on the Multi Commodity Exchange (MCX) witnessed a sharp uptick on Friday, July 3, 2026, with prices gaining up to 2% during the trading session. The rally was primarily fueled by a weaker US dollar and favorable global market trends.
Gold Prices Gain Rs 1,400 per 10 Grams
Gold futures for delivery in August 2026 on MCX surged by Rs 1,400, or 1.97%, to reach Rs 72,500 per 10 grams. The contract had opened at Rs 71,300 and touched an intraday high of Rs 72,550 before settling. The positive momentum was attributed to a decline in the US dollar index, which made dollar-denominated gold cheaper for holders of other currencies.
According to market analysts, the weaker greenback was a result of dovish comments from the US Federal Reserve regarding interest rate cuts later this year. This boosted demand for safe-haven assets like gold.
Silver Prices Climb 2% to Rs 88,200 per Kg
Silver futures for September 2026 delivery on MCX also rallied, gaining Rs 1,720 or 2% to trade at Rs 88,200 per kilogram. The white metal mirrored gold's ascent, supported by industrial demand and a weaker dollar.
"Silver prices have been buoyed by both investment and industrial demand. The weaker dollar is providing a tailwind, and we expect prices to remain elevated in the near term," said a commodity analyst at a leading brokerage firm.
Global Cues Support Domestic Rally
On the international front, spot gold in London rose 1.5% to $2,380 per ounce, while silver gained 2.1% to $31.50 per ounce. The rally was driven by geopolitical tensions and expectations of looser monetary policy by major central banks.
Market participants are now eyeing the US non-farm payrolls data due later in the day, which could provide further direction for the dollar and precious metals.
Outlook for Precious Metals
Analysts remain bullish on gold and silver in the medium term, citing a combination of factors including a weaker dollar, central bank buying, and heightened geopolitical risks. "The current environment is favorable for precious metals. Investors should consider adding gold and silver to their portfolios for diversification," suggested a wealth manager.
On the MCX, gold is expected to find support at Rs 71,800 and resistance at Rs 73,000, while silver may trade in the range of Rs 87,000 to Rs 89,500 in the coming sessions.
