Gold falls 1.36% this week on stable dollar, Fed rate hike bets
Synopsis
Gold shed 1.36% this week — its steepest weekly drop in recent sessions — as the US PCE inflation reading hit a two-year high of 3.8%, hardening Fed rate-hike bets and lifting the dollar. With COMEX Gold stuck in a $4,570–$4,600 consolidation band and MCX resistance at ₹1,62,000, the bullion market is effectively in a holding pattern until the Fed's next move.
Key Takeaways
MCX Gold fell 1.36 per cent over the week ending 30 May , closing at ₹1,56,000 per 10 grams in futures.
24-carat gold (IBJA) dropped from ₹1,58,622 on Monday to ₹1,56,463 on Friday — a decline of over ₹2,100 .
MCX Silver May futures lost 0.94 per cent on Friday, last quoted at ₹2,67,000 per kg .
US PCE inflation rose 3.8 per cent year-on-year in April — the fastest pace since May 2023 — reinforcing Fed rate-hike expectations.
COMEX Gold is consolidating in the $4,570–$4,600 range; key resistance at $4,600–$4,650 , support at $4,400–$4,350 .
For MCX Gold, resistance lies at ₹1,60,000–₹1,62,000 ; critical support at ₹1,54,000–₹1,52,000 .
Gold prices declined 1.36 per cent over the week ending 30 May, pressured by a steady US dollar and stronger-than-expected American inflation data that reinforced bets on a US Federal Reserve rate hike later this year. The retreat snapped a period of cautious optimism in bullion markets, with both gold and silver futures closing lower on Friday.
Weekly and Friday Price Movement
On Friday, MCX Gold June futures slipped 0.59 per cent, while MCX Silver May futures shed 0.94 per cent. Gold futures were last quoted at ₹1,56,000, with silver futures at ₹2,67,000 per kg.
According to data published by the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold stood at ₹1,56,463 on Friday, down from ₹1,58,622 at Monday's market opening — a weekly erosion of over ₹2,100 per 10 grams.
What Drove the Decline
Two macro forces combined to weigh on gold this week. The dollar index edged up approximately 0.10 per cent, making dollar-denominated commodities costlier for overseas buyers. More significantly, US Personal Consumption Expenditures (PCE) — the Fed's preferred inflation gauge — rose 3.8 per cent year-on-year in April, the fastest pace since May 2023, according to official data.
That print bolstered the case for monetary tightening. Higher energy prices are also adding to inflationary pressure, increasing the likelihood of Fed action and denting gold's appeal as investors shift toward yield-bearing assets.
What Analysts Are Saying
'Gold and silver continue to attract selective safe-haven and value-oriented buying near key technical levels, although upside momentum remains closely linked to expectations surrounding US monetary policy, bond yields and the trajectory of the US dollar,' an analyst said.
Recent US Fed meeting minutes revealed that more officials are now open to the possibility of further rate hikes — a signal markets have taken seriously. On the international front, COMEX Gold is currently trading in the $4,570–$4,600 range, reflecting a consolidation phase and a cautious undertone, the analyst added.
Key Technical Levels to Watch
For COMEX Gold, immediate resistance is placed in the $4,600–$4,650 region, while the $4,400–$4,350 range serves as a critical support zone, according to market participants.
On the domestic front, MCX Gold faces immediate resistance in the ₹1,60,000–₹1,62,000 band. The ₹1,54,000–₹1,52,000 region continues to act as a critical support base. A sustained break below that range could accelerate selling pressure.
Outlook
With the Fed's rate trajectory remaining the dominant variable, gold's near-term direction will hinge on upcoming US economic data and any fresh commentary from Fed officials. Until clarity emerges on the pace of tightening, analysts expect bullion to remain range-bound with a cautious bias.
Point of View
Yield-bearing assets win and non-yielding bullion loses. The more telling signal is in the Fed minutes: the shift from 'one more hike possible' to 'more officials open to hikes' is a meaningful hawkish pivot. For Indian buyers, the rupee cushion has historically softened dollar-driven gold dips, but if the dollar index extends its run, that buffer narrows. The ₹1,52,000 support level is the number to watch — a breach there would signal a more structural retreat, not just a weekly correction.
NationPress
11 Aug 2026
Frequently Asked Questions
Why did gold prices fall this week?
Gold fell 1.36 per cent this week primarily because US PCE inflation data came in at 3.8 per cent year-on-year for April — the highest since May 2023 — strengthening expectations that the US Federal Reserve will raise interest rates. A stable dollar added further pressure on the metal.
What is the current MCX gold price?
As of Friday, 30 May, MCX Gold June futures were trading at ₹1,56,000, while the IBJA-listed price for 10 grams of 24-carat gold stood at ₹1,56,463.
How did silver perform this week?
MCX Silver May futures fell 0.94 per cent on Friday and were last quoted at ₹2,67,000 per kg, mirroring the broader weakness in precious metals driven by Fed rate-hike concerns.
What are the key technical levels for gold?
For COMEX Gold, resistance is at $4,600–$4,650 and support at $4,400–$4,350. For MCX Gold, resistance lies in the ₹1,60,000–₹1,62,000 band, with critical support at ₹1,54,000–₹1,52,000.
What is the outlook for gold prices?
Analysts expect gold to remain range-bound with a cautious bias until there is greater clarity on the US Fed's rate trajectory. Safe-haven and value buying near key support levels continues, but upside momentum is constrained by monetary policy uncertainty and dollar strength.
