COMEX gold was trading at $4,416 an ounce, down $8.90, or 0.20%, in early trade. Prices moved between a high of $4,422.10 and a low of $4,396.40 an ounce.
COMEX silver, meanwhile, was at $67.270 an ounce, up $0.121, or 0.18%, after moving between $66.550 and $67.555 an ounce.
The move in gold comes as US Treasury yields remain elevated. The benchmark two-year Treasury yield has risen sharply in recent sessions, with markets reassessing the path of US monetary policy following the Federal Reserve’s latest guidance. Higher yields can weigh on gold because the metal does not generate interest income.
The dollar also remained firm against major currencies, adding to pressure on bullion. Investors are now watching a fresh set of economic indicators, including manufacturing and services PMI readings, US housing data, durable goods orders and consumer sentiment, for clues on the outlook for interest rates and demand for precious metals.
What is driving gold and silver today?
- US yields and Fed outlook: Rising bond yields remain a key headwind for gold. Markets are assessing how long US interest rates could remain elevated, which could influence demand for non-yielding assets.
- Dollar movement: A firm US dollar can make dollar-denominated commodities such as gold and silver more expensive for buyers holding other currencies, potentially limiting demand.
- Geopolitical risks: Developments in West Asia remain an important factor for bullion. Any escalation could support safe-haven demand, although its impact can be offset by movements in yields and the dollar.
Gold, silver outlook
Gold had ended the previous week higher, with COMEX December gold closing at $4,424.90 an ounce, while silver gained around 3% for the week to close at $67.15 an ounce.
On MCX, October gold futures rose ₹1,597, or 1.04%, last week to ₹1.54 lakh per 10 grams, while silver futures gained nearly 3% to ₹2.41 lakh per kg.Analysts had expected gold to remain volatile and range-bound as markets weigh the dollar, bond yields, geopolitical developments and crude prices. The immediate focus is likely to remain on whether elevated yields and a firm dollar continue to cap bullion, or whether geopolitical risks and investment demand provide support.
-With agencies inputs
