Gold and Silver Rebound After Sharp Weekly Decline

Gold and silver prices climbed in early trading on Monday, October 5, driven by shifts in the US dollar, Treasury yields, and ongoing geopolitical tensions. On COMEX, gold rose 0.47% to $4,182 per ounce, while silver jumped 1.96% to $61.60 per ounce.

The gains follow a sharp correction the previous week, with COMEX gold futures for December delivery dropping 3.7% to $4,162.3 per ounce, and silver falling 6.7% to $60.41 per ounce. The declines were attributed to a stronger US dollar and higher bond yields, which overshadowed earlier support from softer US employment data and expectations around monetary policy.

Analysts highlight that the dollar and US Treasury yields remain critical factors for gold's near-term performance. A sustained rise in either could pressure the metal, while a reversal might offer support. Geopolitical developments, particularly the unresolved US-Iran situation, could also fuel volatility, though easing concerns over oil supplies have reduced some of the risk premium.

Silver is expected to remain more volatile due to its dual role as both a precious and industrial metal. Its recent decline was steeper than gold's, partly due to broader weakness in industrial commodities. On the MCX, gold futures for December delivery ended last week at around ₹1.5 lakh per 10 grams, down 2%, while silver fell nearly 4% to around ₹2.25 lakh per kg.