COMEX gold was trading at $4,357.30 per ounce, down $6.10 or 0.14%, while COMEX silver fell 0.63% to $68.15 per ounce during Asian trading hours.
The weakness in precious metals comes after a sharp correction last week. Gold touched its lowest level of 2026 near the $4,300 mark and registered a weekly decline of nearly 4%, while silver fell around 7% to test the $66 an ounce level.
Market participants attributed the decline to stronger-than-expected US employment data, which reinforced expectations that the US Federal Reserve could maintain a restrictive interest rate stance for longer. Higher Treasury yields and a stronger US dollar have reduced the appeal of non-yielding assets such as gold and silver.
According to market data, yields on the benchmark 10-year US Treasury note climbed to a two-week high, increasing the opportunity cost of holding bullion. Traders are also pricing in a growing possibility of a Federal Reserve rate hike later this year, following robust economic and labour market indicators.
At the same time, geopolitical developments in the Wesy Asia have kept inflation concerns elevated. Although Iran and Israel indicated a halt in direct hostilities after diplomatic intervention from the United States, markets continue to monitor the situation closely due to its potential impact on energy prices and global inflation.
Analysts note that rising oil prices linked to regional tensions
could complicate the inflation outlook and delay any easing cycle by major central banks.
“Gold and silver are falling due to a confluence of powerful headwinds. A stronger-than-expected US jobs report has reignited fears of a Fed rate hike, while a stronger dollar has made bullion more expensive for global buyers. The Iran conflict has also pushed energy prices higher, raising inflation expectations and supporting higher real yields,” said Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions and President of the India Bullion and Jewellers Association.
Kothari said gold is currently trading near a key technical support zone around $4,300 per ounce, equivalent to roughly ₹1.54 lakh per 10 grams in the domestic market. He expects a technical rebound of 3-4 per cent from current levels as bargain hunters enter the market. However, a decisive break below the support could expose gold to further downside towards the $4,000-$4,100 an ounce range.
Silver is also testing crucial support levels between $66 and $67 per ounce. While a short-term recovery remains possible, sustained weakness below these levels could trigger additional selling pressure, he added.
Meanwhile, institutional sentiment has shown signs of softening. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, declined 0.5% to 929.62 metric tonnes at the end of last week, indicating some reduction in investor exposure.
Rajkumar Subramanian, Head – Product & Family Office at PL Wealth, said the recent decline reflects changing expectations around interest rates rather than a deterioration in gold’s long-term fundamentals.
“The sharp drop in gold prices is a reaction to a strong US jobs report, which suggests interest rates may remain higher for longer. While near-term volatility could persist ahead of key US inflation data and Federal Reserve commentary, gold continues to play an important role as a long-term hedge against inflation and uncertainty,” he said.
–With agencies inputs
