Gold Under Pressure as US Yields Climb and Fed Bets Shift

Gold and silver prices are expected to remain under pressure this week as US yields climb and Federal Reserve bets shift. The market will closely focus on upcoming US data, including consumer confidence, GDP, and PCE inflation readings, which will provide cues for bullion sentiment.

The US-Iran standoff is also a key factor in geopolitical uncertainty, with US President Donald Trump rejecting Tehran's proposal to reopen the Strait of Hormuz within a week. This will continue to play a role in commodity markets, alongside West Asia tensions and their impact on crude prices.

On the Multi Commodity Exchange (MCX), gold futures for October delivery fell Rs 3,500 or nearly 2.3% last week to settle at Rs 1.5 lakh per 10 grams. Silver futures declined Rs 6,907 or 3% to Rs 2.34 per kilogram.

A sustained rise in the dollar index above 101 could add to pressure on gold as a stronger dollar tends to reduce demand for dollar-denominated bullion. In global markets, Comex gold futures for December delivery dropped USD 103.7 or 2.34% last week to USD 4,321.2 per ounce.

The broader outlook remains cautious with volatility likely to stay elevated as the market closely focuses on upcoming US nonfarm payrolls and unemployment data, which will be crucial in determining expectations around the Federal Reserve's October policy decision.