Gold falls 0.87% this week as stronger dollar, Fed rate fears weigh
Synopsis
Gold's worst week in months just got worse on Friday — a blowout US jobs report sent the dollar surging and Treasury yields climbing, stripping the metal of its safe-haven premium. With Comex gold at its lowest since late March and silver logging a fourth straight weekly loss, the market is pricing in a Federal Reserve that has no reason to cut rates anytime soon.
Key Takeaways
Gold declined 0.87 per cent over the week ending 6 June , pressured by a strong US jobs report.
MCX gold August futures fell 2.47 per cent on Friday to ₹1,55,600 ; MCX silver July futures lost 6.27 per cent to ₹2,48,201 per kg .
Comex gold dropped to a session low of $4,369 per troy ounce — its weakest since late March — down nearly 5 per cent for the week.
Silver slid to $68.63 , a weekly loss of ~ 9 per cent and its fourth consecutive weekly decline .
The dollar index rose to around 99.5 and Treasury yields climbed, dimming appeal of non-yielding assets.
Key support for Comex gold is at $4,350 ; resistance is seen in the $4,460–$4,500 zone.
Gold prices declined 0.87 per cent over the week ending 6 June, pressured by a stronger-than-expected US jobs report that reinforced expectations the Federal Reserve could hold interest rates elevated well into 2026. The selloff was sharper on Friday, with both gold and silver posting steep single-session losses.
Domestic Market Snapshot
On the Multi Commodity Exchange (MCX), gold August futures fell 2.47 per cent on Friday, with the contract last quoted at ₹1,55,600. MCX silver July futures suffered a steeper drop of 6.27 per cent, with silver trading at ₹2,48,201 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 ₹1,54,238 on Friday — down from ₹1,55,599 recorded at Monday's market opening, marking a week-on-week decline for retail buyers as well.
Global Selloff: Comex Gold Hits March Low
Comex gold slid as much as $136 to a session low of $4,369 per troy ounce — its weakest level since late March — leaving the metal down nearly 5 per cent for the week. Silver fared worse, plunging $5.34 to a low of $68.63, a weekly decline of approximately 9 per cent and its fourth consecutive weekly loss.
The dollar index climbed to around 99.5 following the robust jobs print, while US Treasury yields also moved higher — a dual headwind for non-yielding assets like gold and silver. Notably, COMEX gold is currently trading near the $4,350 support zone, with immediate resistance placed in the $4,460–$4,500 band, according to market participants.
Why Silver Is Underperforming Gold
Silver remained comparatively weaker than gold through the week, facing sustained selling pressure driven by profit-booking and concerns over industrial demand, analysts noted. While gold has shown signs of resilience near key support levels, silver continues to exhibit a relatively cautious undertone, they added.
What Drives the Market From Here
Market participants flagged that inflation remains above the Fed's target, keeping the prospect of a 2026 rate hike alive and reinforcing the view that rates may stay higher for longer than previously anticipated. Geopolitical developments in the Middle East, crude oil supply dynamics, US dollar movement, central-bank commentary, and key macroeconomic data releases are expected to dictate short-term direction for precious metals.
Point of View
Lifts the dollar and yields, and non-yielding metals bear the cost. What is worth watching is silver's fourth straight weekly loss — a signal that industrial demand concerns are compounding the macro headwind, not just mirroring it. If the Fed's 'higher for longer' posture hardens further, gold's $4,350 support zone faces a genuine test. Indian retail buyers, already paying north of ₹1.54 lakh per 10 grams, have little buffer if the dollar index extends its run.
NationPress
10 Aug 2026
Frequently Asked Questions
Why did gold prices fall this week?
Gold fell 0.87 per cent over the week after a stronger-than-expected US jobs report lifted the dollar index to around 99.5 and pushed Treasury yields higher, reducing the appeal of non-yielding assets like gold. The data reinforced expectations that the Federal Reserve could keep interest rates elevated through 2026.
What is the current gold price in India?
According to data from the India Bullion and Jewellers Association (IBJA), 10 grams of 24-carat gold was priced at ₹1,54,238 on Friday, 6 June — down from ₹1,55,599 at Monday's market opening. MCX gold August futures were last quoted at ₹1,55,600.
How did silver perform compared to gold this week?
Silver underperformed gold significantly, posting a weekly decline of around 9 per cent on Comex, hitting a low of $68.63 — its fourth consecutive weekly loss. MCX silver July futures fell 6.27 per cent on Friday to ₹2,48,201 per kg, with analysts citing profit-booking and industrial demand concerns.
What is the outlook for gold prices in the near term?
Market participants place immediate support for Comex gold at $4,350 and resistance in the $4,460–$4,500 zone. Short-term direction is expected to be driven by geopolitical developments in the Middle East, US dollar movement, central-bank commentary, and upcoming macroeconomic data releases.
How do Fed rate hike expectations affect gold?
When the Federal Reserve is expected to keep interest rates high, the US dollar and Treasury yields tend to rise, making non-yielding assets like gold less attractive to investors. With inflation still above the Fed's target, the prospect of a 2026 rate hike is keeping downward pressure on gold prices.
