Gold Prices Dipped 1.16% as Stronger Dollar and Higher US Yields Weighed On Safe-Haven Demand

Gold prices dipped 1.16% on a weekly basis due to higher US Treasury yields and a firmer dollar, which dampened safe-haven demand. On Friday, MCX gold August futures gained 0.06%, while MCX silver September futures declined 1.13%. Currently, gold futures stand at Rs 1,41,599 per kg, while silver futures stood at Rs 2,17,488 per kg.

The price of 10 grams of 24-carat gold was at Rs 1,42,860 on Friday, down from Rs 1,44,532 seen on Monday's market opening. According to the India Bullion and Jewellers Association (IBJA), this decline in prices may be due to investors awaiting fresh macroeconomic catalysts and greater clarity on the Federal Reserve's policy path.

Commodity markets had a turbulent week as the US-Iran conflict traversed multiple times from de-escalation to renewed hostilities. Although crude prices eased, investors remain cautious about inflation fears lifting US Treasury yields and supporting the dollar, both weighing on demand for non-yielding precious metals.