Gold prices fell by 0.87% over the week following a robust US jobs report, suggesting the Federal Reserve may maintain higher interest rates. MCX gold August futures dropped by 2.47%, with MCX silver July futures also decreasing by 6.27%.
The price of 10 grams of 24-carat gold stood at Rs 1,54,238 on Friday, down from Rs 1,55,599 at the week’s start, as reported by the India Bullion and Jewellers Association (IBJA). Comex gold hit a low of $4,369 per troy ounce, marking a nearly 5% decline for the week, while silver dropped by around 9%.
The dollar index rose to approximately 99.5% due to the strong jobs report, leading to higher Treasury yields. This rise diminished the attractiveness of non-yielding assets like gold and silver. Market observers noted that inflation exceeding the Fed’s target could prolong high interest rates, potentially delaying rate hikes until 2026.
Silver faced more selling pressure compared to gold, attributed to profit-taking and concerns about industrial demand. While gold showed resilience near key support levels, silver displayed a cautious tone. Market experts mentioned that COMEX Gold is currently hovering around the $4,350 support level, with resistance expected in the $4,460–$4,500 range.
Geopolitical events in the Middle East, oil supply dynamics, US dollar fluctuations, central bank statements, and economic data releases are anticipated to influence short-term market trends.
