Gold prices retreated this week as stronger-than-expected US employment data reinforced market anticipation that the Federal Reserve will keep interest rates elevated. This pressured the safe-haven metal, which dropped below key support levels and lost ground against a rising dollar and Treasury yields.
On the commodities exchange, gold futures for August delivery fell over 2%, with silver futures experiencing a sharper decline exceeding 6%. The price of 10 grams of 24-carat gold in the Indian market dropped from opening levels early in the week, while American gold futures fell to levels not seen since late March. Silver faced even greater losses, marking its fourth consecutive weekly downturn.
The strengthening US dollar index, climbing toward 99.5, alongside rising yields on Treasury securities, reduced the appeal of non-yielding assets like gold and silver. The solid jobs report suggested persistent inflationary pressures, sustaining market expectations for a potential rate hike by the Fed in 2026 and the likelihood that interest rates will remain high for an extended period.
Market analysts highlighted that silver remains under heavier selling pressure compared to gold, due to profit-taking and concerns regarding industrial demand. While gold has managed to hold near critical support zones, silver’s outlook remains cautious amid these underlying challenges.
In the near term, Comex gold is hovering close to a support zone around $4,350 per troy ounce, with resistance seen in the $4,460 to $4,500 range. Key factors expected to shape short-term movements include geopolitical tensions in the Middle East, fluctuations in crude oil supply, US dollar strength, central bank communications, and upcoming economic data releases.