Gold and Silver Rebound After Last Week's Sharp Decline
Gold and silver prices climbed in early trading on Monday (October 5), driven by shifts in the US dollar, Treasury yields, and geopolitical factors. On COMEX, gold rose 0.47% to $4,182 per ounce, while silver surged 1.96% to $61.60 per ounce. These gains followed a significant correction the previous week, with gold dropping 3.7% and silver tumbling 6.7% due to a stronger US dollar and higher bond yields.
The precious metals had earlier found support from softer US employment data and expectations around monetary policy, but profit-taking emerged as the dollar strengthened. Analysts highlight that gold’s near-term trajectory will hinge on the dollar and Treasury yields, with sustained increases in either posing downward pressure.
Geopolitical tensions, particularly the US-Iran situation, could reintroduce safe-haven demand if conditions worsen. However, easing concerns over oil supplies had reduced some of the geopolitical risk premium last week. Silver, with its dual role as a precious and industrial metal, may see greater volatility, especially amid 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 ₹2.25 lakh per kg. Experts suggest that bullion markets will remain sensitive to shifts in the dollar, bond yields, and geopolitical developments, with a mixed outlook in the near term.