Gold Price / Gold Slips as Strong Dollar Weighs on Bullion; Silver Suffers Steeper Weekly Losses
·1 hour ago·2 min read
Key Points
Gold prices ended the week lower as robust US employment data strengthened the dollar and fueled expectations that the Federal Reserve may maintain higher interest rates for longer. Silver witnessed a steeper decline amid profit booking and concerns over industrial demand.
New Delhi, June 6: Gold prices witnessed a decline this week as stronger-than-expected economic data from the United States dampened investor sentiment and reinforced expectations that the Federal Reserve could maintain elevated interest rates for an extended period.
According to market data, gold slipped 0.87 per cent during the week, while silver recorded significantly steeper losses. On Friday, MCX gold August futures fell 2.47 per cent, whereas MCX silver July futures dropped 6.27 per cent, reflecting heightened volatility across the precious metals segment.
Data from the India Bullion and Jewellers Association (IBJA) showed that the price of 10 grams of 24-carat gold declined to Rs 1,54,238 on Friday from Rs 1,55,599 recorded at the beginning of the week. Silver prices also remained under pressure amid sustained selling by investors.
Internationally, COMEX gold fell sharply, touching a session low of $4,369 per troy ounce, its weakest level since late March. The precious metal ended the week with a decline of nearly 5 per cent. Silver fared even worse, slipping to $68.63 and registering a weekly loss of around 9 per cent, marking its fourth consecutive weekly decline.
Also Read: Click to Invest, Convert to Shine: Understanding Digital and Physical Gold
Analysts attributed the weakness in bullion prices to a stronger US dollar and rising Treasury yields following a robust jobs report. The dollar index climbed near 99.5, reducing the attractiveness of non-yielding assets such as gold and silver.
Market participants believe inflation remains above the Federal Reserve’s preferred target, increasing the likelihood that policymakers could keep interest rates higher for longer. Such expectations typically weigh on precious metals by raising the opportunity cost of holding them.
Despite the recent correction, analysts noted that gold continues to find support near key technical levels, while silver remains vulnerable to further pressure. Upcoming geopolitical developments, crude oil trends, central bank commentary and major economic indicators are expected to influence the near-term direction of bullion markets.
According to market data, gold slipped 0.87 per cent during the week, while silver recorded significantly steeper losses. On Friday, MCX gold August futures fell 2.47 per cent, whereas MCX silver July futures dropped 6.27 per cent, reflecting heightened volatility across the precious metals segment.
Data from the India Bullion and Jewellers Association (IBJA) showed that the price of 10 grams of 24-carat gold declined to Rs 1,54,238 on Friday from Rs 1,55,599 recorded at the beginning of the week. Silver prices also remained under pressure amid sustained selling by investors.
Internationally, COMEX gold fell sharply, touching a session low of $4,369 per troy ounce, its weakest level since late March. The precious metal ended the week with a decline of nearly 5 per cent. Silver fared even worse, slipping to $68.63 and registering a weekly loss of around 9 per cent, marking its fourth consecutive weekly decline.
Also Read: Click to Invest, Convert to Shine: Understanding Digital and Physical Gold
Analysts attributed the weakness in bullion prices to a stronger US dollar and rising Treasury yields following a robust jobs report. The dollar index climbed near 99.5, reducing the attractiveness of non-yielding assets such as gold and silver.
Market participants believe inflation remains above the Federal Reserve’s preferred target, increasing the likelihood that policymakers could keep interest rates higher for longer. Such expectations typically weigh on precious metals by raising the opportunity cost of holding them.
Despite the recent correction, analysts noted that gold continues to find support near key technical levels, while silver remains vulnerable to further pressure. Upcoming geopolitical developments, crude oil trends, central bank commentary and major economic indicators are expected to influence the near-term direction of bullion markets.
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