Gold and silver prices moved higher on the Multi Commodity Exchange on Monday as weak US labor data increased expectations of potential interest rate cuts. Despite the gains, the market remains volatile, with traders watching for upcoming economic updates and geopolitical developments.
On Monday, August 10, 2026, gold and silver futures on the Multi Commodity Exchange (MCX) posted modest gains, continuing a trend influenced by fresh economic signals from the United States. Gold futures were trading near ₹1,51,900 per 10 grams, while silver futures hovered around ₹2,31,800 per kilogram. This movement follows a strong performance in the previous week, where precious metals rallied significantly.
The primary factor driving this sentiment is the recent US labor market report for July, which showed a decline in jobs. For investors, this data suggests that the US economy may be slowing, which in turn fuels hopes that the Federal Reserve may move toward a more accommodative interest rate policy. When expectations for high interest rates decrease, gold often becomes more attractive, as it does not pay interest, making it a preferred asset compared to interest-bearing alternatives like bonds.
Market Volatility and Profit-Taking
Despite the positive trend, the market is currently experiencing some volatility. After a steep climb over the last several days, some traders are choosing to book profits, which often leads to price fluctuations during the trading session. While international prices on Comex showed signs of profit-taking, the domestic MCX market has maintained a degree of resilience, supported by local demand trends.
Investors should be aware of several factors that could create price swings in the near term. Geopolitical uncertainty in West Asia, particularly regarding developments in the Strait of Hormuz, continues to be a source of potential instability that can influence commodity prices. Furthermore, the market is awaiting upcoming US Consumer Price Index (CPI) and Producer Price Index (PPI) reports. These inflation indicators will be critical, as they will provide more clarity on the future direction of the US Federal Reserve's monetary policy. The performance of the US dollar remains another key factor to track, as it generally has an inverse relationship with the price of gold and silver.