Gold falls 1.16 pc for the week as stronger dollar, higher US yields weigh on prices
Gold prices fell 1.16 per cent during the week as stronger US Treasury yields and a firmer dollar dampened safe-haven demand. Investors are now awaiting key US inflation and labour market data for further clues on the Federal Reserve's interest rate trajectory
Mumbai: Gold prices dipped 1.16 per cent on a weekly basis as higher US Treasury yields and a firmer dollar capped safe‑haven demand.
On Friday, MCX gold August futures gained 0.06 per cent while MCX silver September futures dipped 1.13 per cent. Currently gold futures stand at Rs 1,41,599, while silver futures stood at Rs 2,17,488 per kg.
The price of 10 grams of 24-carat gold was at Rs 1,42,860 on Friday down from Rs 1,44,532 seen on Monday market opening, according to data published by the India Bullion and Jewellers Association (IBJA).
Gold and silver remained volatile through the week, with bullion briefly rallying around 2 per cent after the US Federal Reserve left interest rates unchanged. Gold later extended those gains into Thursday as the dollar softened later in the week.
“Silver was comparatively steady, trading within a relatively narrow range, while the broader precious metals complex maintained a cautious tone as investors awaited fresh macroeconomic catalysts and greater clarity on the Federal Reserve’s policy path,” an analyst said.
Commodity markets had a turbulent week as the US-Iran conflict traversed multiple times from de-escalation to renewed hostilities.
Though crude prices eased, investors are cautious about inflation fears lifting US Treasury yields and supporting the dollar, both weighing on demand for non‑yielding precious metals.
The Fed’s relatively hawkish stance, combined with a still-resilient labour market and sticky inflation expectations driven by the recent rise in oil prices, reduced expectations of near-term rate cuts and pushed the implied probability of a September rate hike to roughly 63 per cent.
Iran’s Revolutionary Guard turned back tankers in the Strait of Hormuz, while Saudi Arabia convened 43 countries to form a maritime coalition to protect Red Sea shipping following a Houthi blockade.
Market participants said that a sustained ceasefire could ease pressure on energy prices, improve broader risk sentiment and provide additional support to precious metals.
Immediate resistance is placed at $4,160–$4,180, for Comex Gold, while support lies at $4,090–$4,070, they said.
For MCX Gold, immediate resistance is placed at Rs 1,44,000–Rs 1,44,300, while the support lies at Rs 1,43,000–Rs 1,43,300, they added.
Investors closely monitor upcoming US inflation and labour market data, Federal Reserve commentary, Treasury yield movements and the US Dollar Index for fresh clues on the interest-rate outlook.
