MCX Gold futures rise after weak US labor data, MCX Crude futures stabilise after Wednesday’s decline

MCX Gold futures opened higher on Thursday after data indicated that the labor market was weakening, supporting the case for a rate cut in September.

The Labor Department said on Wednesday that for the week ended June 29, initial claims for state unemployment benefits rose 4,000 to a seasonally adjusted 238,000 compared with economist expectations of 235,000. Gold prices rose nearly 1% on Wednesday to hit near two-week highs following the release of the data.

MCX Gold futures maturing in August were trading 0.06% higher at ₹72,449 per 10 gram at 9:05 a.m.

Earlier, Federal Reserve Chairman Jerome Powell said the United States was back on a disinflationary path, but policymakers needed more data before reducing rates.

Metals

MCX Silver futures maturing in July opened flat at ₹89,894 per kg on Thursday at 9:05 a.m. Meanwhile, MCX Zinc futures maturing in July were trading 0.13% higher at ₹273.15 per kg. MCX Copper futures maturing in July traded 0.01% lower at ₹862.75 per kg.

Crude Oil

Meanwhile, the MCX Crude Oil futures edged higher on Thursday after declining late on Wednesday following weak economic data from the US that showed the economy may be cooling off finally.

MCX Crude Oil July futures were trading 0.14% higher at ₹6,961 at 9:08 a.m.

The MCX Natural Gas futures maturing in July were trading 0.29% higher at ₹204.10.

Economic Data

The Institute for Supply Management stated that its non-manufacturing purchasing managers (PMI) index declined to 48.8 in June, hitting the lowest level since May 2020, and compared with 53.8 in May this year. It was also the second time in 2024 that the PMI fell below 50, indicating a contraction in the services sector.

July 05: House Price Index (Euro Area)