Indian Markets See Gold Lose Over ₹1,600, Silver Down Nearly ₹6,500 in a Week

Mumbai – Over the past seven days, India’s bullion market experienced a noticeable correction. The price of 10 grams of 999‑purity gold slipped from ₹1,44,532 at the start of the week to ₹1,42,860 on Friday, a reduction of ₹1,672 (about 1.15%). Silver fared worse, with the 1‑kilogram rate falling from ₹2,24,771 to ₹2,18,295 – a loss of ₹6,476 or 2.88%.

The movement mirrored broader global trends where a firm U.S. dollar and climbing Treasury yields dampened appetite for safe‑haven assets. On the MCX, August gold futures nudged up 0.06% before closing, while September silver futures declined 1.13%.

Earlier in the week, gold had rallied roughly 2% after the Federal Reserve announced it would keep rates unchanged, only to retreat as the dollar regained momentum. Market observers said investors are now awaiting more concrete signals on the Fed’s next steps, U.S. inflation data and employment figures.

Geopolitical headlines added another layer of complexity. A Saudi‑led initiative to secure Red Sea shipping lanes and Iran’s recent interference in the Hormuz Strait heightened regional tension, keeping oil markets volatile. Although crude prices softened a bit, the stronger dollar and higher Treasury yields continued to weigh on non‑interest‑bearing investments.

Analysts caution that with the Fed adopting a relatively tight stance, a robust labour market and persistent inflation fears, expectations of imminent rate cuts have faded. The probability of a September rate hike now stands at around 63%, suggesting that gold and silver may face further downside pressure unless global risk sentiment improves.