Why are gold and silver prices rising today

Gold prices today: MCX gold futures for August 5 traded with gains of 0.6%, reaching ?72,955 per 10 gm, while MCX Silver futures for July 5 surged by 1.44% to ?91,750 per kg.
Gold and silver are shining brighter on Thursday (May 6). The rally comes amid a retreat in the dollar and Treasury yields, fueled by expectations of US interest rate cuts possibly beginning as early as September.
Investors are awaiting the US non-farm payrolls data for further insights.

As of 0540 GMT, spot gold climbed 0.6% to $2,368.99 per ounce, building on a 1% gain from the previous session.

US gold futures also rose by 0.5% to $2,388.20.
In the domestic market too, gold futures traded positively.
MCX gold futures for August 5 traded with gains of 0.6%, reaching ?72,955 per 10 gm, while MCX Silver futures for July 5 surged by 1.44% to ?91,750 per kg.

The dollar index slipped 0.1%, hovering near a two-month low, while benchmark US 10-year Treasury yields remained close to their weakest levels in over two months.

Analysts attribute this to investors shunning the US dollar following weaker-than-expected ADP data, ahead of the crucial non-farm payrolls report.

Tim Waterer, chief market analyst at KCM Trade, noted, "The fundamental outlook still looks constructive for gold as we move closer towards possible Fed rate cuts in the second half of the year. Though the $2,300 level could come into question on the downside if we get a particularly strong NFP figure."

As markets eagerly await Friday's non-farm payrolls data, a Reuters poll suggests that a majority of forecasters anticipate the Federal Reserve to cut its key interest rate in September, with another cut likely later in the year.

Lower interest rates diminish the opportunity cost of holding non-yielding assets like gold, hence fueling the rally in precious metals.