Gold, silver trade mixed on MCX as Fed rate pause bets grow
Synopsis
Gold slipped on profit booking while silver notched a third straight session of gains on the MCX on 2 July, as the US Federal Reserve's signal of no urgency to raise rates continued to drive a divergence between the two metals. With the US non-farm payrolls report looming, the next move in both metals could hinge on a single data print.
Key Takeaways
MCX gold futures (August) fell ₹633 to ₹1,43,797 per 10 grams on 2 July , weighed by profit booking after COMEX gold corrected from $4,115 per ounce .
MCX silver futures (September) rose as much as 0.84% to an intraday high of ₹2,32,339 per kg , extending gains for a third consecutive session .
Globally, gold traded at $4,076 per ounce (down 0.14% ) while silver rose 0.14% to $60.59 per ounce .
US Federal Reserve Chairman signalled no urgency to raise rates, boosting sentiment for silver and limiting gold's losses.
Investors are awaiting the US non-farm payrolls report for fresh direction on the Fed's rate policy.
Gold and silver traded in opposite directions on the Multi Commodity Exchange (MCX) during Thursday morning's session on 2 July, with gold slipping on profit booking while silver extended its winning run to a third consecutive session, buoyed by growing expectations that the US Federal Reserve will hold interest rates steady for now.
Gold Slips on Profit Booking
Gold futures (August) on the MCX opened at ₹1,43,882 per 10 grams, down ₹548 or 0.37% from the previous close of ₹1,44,430. By around 10:40 am IST, the yellow metal had slipped further to ₹1,43,797, a decline of ₹633 or 0.44%. The session's intraday low stood at ₹1,43,771, down 0.45%, while the high touched ₹1,44,448.
In international markets, gold was down 0.14% at $4,076 per ounce, having corrected from the previous session's peak of $4,115 per ounce on COMEX. According to market experts, investors were booking profits ahead of the US non-farm payrolls report, which is expected to provide fresh direction on the Fed's rate trajectory. Notably, softer-than-expected US jobs data and lower crude oil prices helped limit the downside.
Silver Outperforms for Third Day Running
Silver futures (September) outpaced gold, jumping as much as 0.84% or nearly ₹2,000 to an intraday high of ₹2,32,339 per kg. At the time of reporting, silver was trading at ₹2,30,790, up ₹406 or 0.18%. The white metal had opened at ₹2,31,196, up ₹812 or 0.35% from the previous close of ₹2,30,384, touching an intraday low of ₹2,30,513.
Globally, silver edged up 0.14% to $60.59 per ounce. Easing US inflation expectations and a dovish tone from US Federal Reserve Chairman — who signalled there is no urgency to raise interest rates — have collectively underpinned the metal's positive momentum, according to market experts.
Fed Signals Drive Sentiment
The broader market narrative this session has been shaped by the Fed's measured stance. Comments from the Fed Chairman suggesting no immediate rate hike have lifted sentiment for rate-sensitive commodities such as silver, which tends to benefit more sharply from a low-rate environment than gold. This is consistent with a pattern seen in earlier sessions this year, where dovish Fed signals triggered outperformance in silver relative to gold.
Gold, meanwhile, remains in a consolidation phase as investors await the non-farm payrolls data for a clearer read on US labour market health — a key input for the Fed's next policy decision.
What to Watch
Traders will closely track the upcoming US non-farm payrolls report for directional cues. A weaker-than-expected jobs print could renew buying interest in gold and further support silver's rally. Conversely, a strong number may revive rate-hike fears and pressure both metals. Crude oil price movements will also remain a secondary watchpoint for gold's near-term trajectory.
Point of View
Already near record highs, faces profit-booking pressure as the upside catalyst stalls, while silver — with its dual industrial and monetary demand — benefits disproportionately from easing rate fears. The real signal to watch is not today's intraday move but the non-farm payrolls print. A soft number could reignite gold's record run and push silver higher still; a strong one could unwind both trades sharply. At $4,076 per ounce, gold is not cheap, and any Fed hawkish pivot — even a verbal one — carries outsized downside risk from these levels.
NationPress
2 Jul 2026
Frequently Asked Questions
Why did gold prices fall on MCX on 2 July?
Gold fell on profit booking after COMEX gold corrected from the previous session's peak of $4,115 per ounce. Investors were also cautious ahead of the US non-farm payrolls report, which could influence the Federal Reserve's interest rate outlook.
Why is silver outperforming gold right now?
Silver has risen for a third consecutive session, supported by easing US inflation expectations and comments from the US Federal Reserve Chairman signalling no urgency to raise interest rates. A low-rate environment tends to benefit silver more sharply due to its combined industrial and monetary demand.
What are the current MCX gold and silver prices?
As of Thursday morning on 2 July, MCX gold futures (August) were trading at ₹1,43,797 per 10 grams, down ₹633 or 0.44%. MCX silver futures (September) were at ₹2,30,790 per kg, up ₹406 or 0.18%.
What is the US non-farm payrolls report and why does it matter for gold?
The US non-farm payrolls report is a monthly jobs data release that is a key indicator of US labour market health. It matters for gold because it directly influences the Federal Reserve's interest rate decisions — a weak jobs print typically supports gold by reducing the likelihood of rate hikes, while a strong print can pressure the metal.
What is the international price of gold and silver today?
In international markets on 2 July, gold was trading at $4,076 per ounce, down 0.14%, while silver edged up 0.14% to $60.59 per ounce.
