Gold, Silver Prices Fall As Strong US Jobs Data Lifts Dollar And Yields

Gold prices declined 0.87 per cent during the week as a stronger-than-expected US jobs report boosted expectations that the Federal Reserve could maintain elevated interest rates for a longer period.

On Friday, MCX gold August futures dropped 2.47 per cent, while MCX silver July futures tumbled 6.27 per cent. Gold futures currently trade at Rs 1,55,600, while silver futures stand at Rs 2,48,201 per kilogram.

According to data released by the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold fell to Rs 1,54,238 on Friday from Rs 1,55,599 recorded at Monday’s market opening.

International markets also witnessed heavy selling pressure. COMEX gold fell by as much as $136 to a session low of $4,369 per troy ounce, its weakest level since late March. The precious metal ended the week nearly 5 per cent lower.

Silver recorded even steeper losses. The metal dropped $5.34 to a low of $68.63 per ounce, resulting in a weekly decline of around 9 per cent and marking its fourth consecutive weekly fall.

The dollar index climbed to nearly 99.5 following the robust US employment data.

Treasury yields also moved higher, reducing the attractiveness of non-yielding assets such as gold and silver.

Market participants observed that inflation remains above the Federal Reserve’s target level. This has kept the possibility of a 2026 rate increase alive and reinforced expectations that borrowing costs may remain elevated for longer than previously anticipated.

Analysts noted that silver remained weaker than gold. The metal continued to face sustained selling pressure due to profit booking. Concerns over industrial demand also weighed on sentiment.

While gold has displayed resilience near important support levels, silver continues to trade with a cautious undertone.

COMEX gold currently trades near the $4,350 support zone. Immediate resistance is positioned between $4,460 and $4,500.

Analysts said developments in the Middle East will likely influence short-term market direction. Crude oil supply trends and movements in the US dollar will also remain important factors. Central bank commentary and key economic data releases could further shape market sentiment.

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