Gold slides 0.40% to $4,173.70/oz, silver slides 1.15% to $59.82/oz, as the dollar index hovers near an 18‑month high. Gaurav Garg, head of research at Lemonn, said investors are holding off on buying pressure until the next US CPI release.
The pullback reflects the classic inverse relationship between the dollar and U.S. bullion. Higher dollar purchases make gold and silver more expensive for foreign buyers, while rising Treasury yields—currently around 4.1% on the 10‑year—make interest‑bearing securities more appealing. Charu Chanana of Saxo notes that even though oil prices eased last session, the fear of inflation keeps yields on a tight leash.
Brent crude is trading near $105.90 a barrel, a two‑week high, amid West Asia supply concerns. The spike in energy costs feeds into inflation expectations, which in turn keeps the Fed in hawkish mode. Prithviraj Kothari, managing director of RiddiSiddhi Bullions, highlighted that hawkish Fed commentary and a firm dollar have been the primary drag on bullion for the past week.
In India, the rupee’s movements add another layer. A weaker rupee cushions international price falls by raising import costs, while a stronger rupee can erode that cushion. Darshan Desai, CEO of Aspect Bullion, said that domestic buyers remain price‑sensitive ahead of the festive season, even as global ETF holdings surge.
Looking ahead, traders are watching the upcoming U.S. CPI data and Fed minutes for any shift in monetary policy. If inflation shows resilience, yields could stay elevated, putting further pressure on gold and silver. Analysts expect volatility to persist until clear signals emerge from the Fed.