Bond Yield Shockwaves Send Precious Metals into Divergent Orbit

A recent high-octane week in global debt markets sent shockwaves through precious metals, causing gold and silver to diverge sharply. The divergence was observed both globally and domestically, with international gold buckling under the weight of surging bond yields. In contrast, silver broke free from gold's pull and surged.

The non-yielding assets faced intense liquidation pressure whenever benchmark U.S. yields spiked. COMEX Gold Futures slipped $44.70 per ounce to settle at $4,515.30/oz, while COMEX Silver Futures logged a solid gain of +$0.74/oz to settle at $67.43 per ounce.

In the Indian market, the Multi Commodity Exchange (MCX) gold futures retreated from mid-week highs to settle at ₹154,800 per 10g, while domestic retail spot silver tracked its global counterpart higher, adding ₹2,630/kg to reach ₹240,510 per kg. The volatile USD/INR exchange rate kept landed import costs elevated.