On COMEX, gold was trading at $4,182 per ounce, up 0.47%, while silver was at $61.60 per ounce, higher by 1.96%, according to market data on October 5.
The gains come after a sharp correction in the previous week. COMEX gold futures for December delivery had declined 3.7% last week to close at $4,162.3 per ounce, while silver fell 6.7% to $60.41 per ounce.
A stronger US dollar and elevated bond yields had weighed on bullion last week, prompting profit-booking after gold had earlier found support from softer US employment data and expectations around monetary policy.
For gold, the dollar and US Treasury yields remain key near-term drivers. A sustained rise in the dollar or further increase in yields could put pressure on the yellow metal, while a reversal in either could provide some support.
Geopolitical developments are also likely to keep prices volatile. The unresolved US-Iran situation could revive safe-haven demand if tensions escalate, although easing concerns around oil supplies had reduced some of the geopolitical risk premium in bullion last week.
Silver could remain relatively more volatile given its dual role as a precious and industrial metal. Its recent decline was sharper than gold’s, with broader weakness across industrial commodities also weighing on prices.
On the domestic front, investors will also watch the Reserve Bank of India’s monetary policy decision later this week, along with global economic data, including services PMI readings, US trade figures and consumer sentiment data, for further cues on interest rates, the dollar and bullion.
On the MCX, gold futures for December delivery had ended the previous week at around ₹1.5 lakh per 10 grams, down about 2%, while silver fell nearly 4% to around ₹2.25 lakh per kg.
Analysts expect bullion to remain sensitive to changes in the dollar, bond yields and geopolitical developments, with the direction likely to remain two-way in the near term.
-With agencies inputs