Gold and silver futures on the MCX retreated, mirroring a broader slide in precious metals as the dollar firmed and Treasury yields climbed.
The drop in gold futures was 0.55% to ₹1.50 lakh per 10 grams, and silver futures slipped 1.16% to ₹2.33 lakh per kg. Spot gold hovered near $4,288 an ounce, and analysts pegged a near‑term trading band of $4,240 to $4,320.
Aamir Makda, Commodity & Currency Analyst at Choice Broking, said the move reflects a stronger US dollar and higher real yields that erode gold’s appeal. Ashish Rajodiya of PL Capital added that the dollar index hit 101, the highest in almost two months.
Vedika Narvekar at Anand Rathi cautioned that the bullish bias on gold remains weak, citing rising rate‑hike expectations and tightening inflation data. She highlighted a broad range of ₹1.49 lakh to ₹1.52 lakh for MCX gold.
Geopolitical risk, meanwhile, offers a counterbalance. Iran’s President Masoud Pezeshkian warned of potential navigation restrictions in the Strait of Hormuz, a move that could lift bullion demand if tensions flare.
Looking ahead, Dhruv Joglekar of Monarch PMS pointed to central banks adding 23 tonnes of gold in July and China’s 22‑month streak of rising holdings. He noted that gold’s traditional link to real yields may be weakening, suggesting a shift toward it as an inflation hedge.
The consensus now is that forthcoming US economic releases, especially labour market figures, will decide whether the current downward bias tightens or loosens. Traders should keep an eye on the 10‑year yield trajectory and any Fed commentary that could alter the risk‑off sentiment.