Gold falls 1.16% in week as firmer dollar caps safe-haven demand

Mumbai: Gold prices declined 1.16 per cent during the week as higher US Treasury yields and a firmer dollar weighed on demand for the non-yielding precious metal amid continuing geopolitical uncertainty.

On Friday, MCX gold August futures gained 0.06 per cent, while MCX silver September futures fell 1.13 per cent. Gold futures stood at Rs 1,41,599, while silver futures were at Rs 2,17,488 per kg.

The price of 10 grams of 24-carat gold was Rs 1,42,860 on Friday, down from Rs 1,44,532 at Monday’s market opening, according to India Bullion and Jewellers Association data.

Bullion remained volatile during the week, briefly gaining around 2 per cent after the US Federal Reserve kept interest rates unchanged. Gold extended its gains into Thursday as the dollar weakened, before retreating as yields and the greenback strengthened. Analysts said persistent inflation concerns linked to higher oil prices could keep US Treasury yields elevated, limiting demand for precious metals.

The Fed’s relatively hawkish stance, resilient labour-market conditions and sticky inflation expectations have reduced expectations of near-term rate cuts.