Gold Posts 1.16% Weekly Dip Amid Firmer Dollar

Bullion remained volatile through the week. Prices briefly rallied around 2 per cent after the US Federal Reserve left interest rates unchanged, with gold extending those gains into Thursday as the dollar softened later in the week.

“Silver was comparatively steady, trading within a relatively narrow range, while the broader precious metals complex maintained a cautious tone as investors awaited fresh macroeconomic catalysts and greater clarity on the Federal Reserve’s policy path,” an analyst said.

Commodity markets experienced a turbulent week as the US-Iran conflict shifted repeatedly between de-escalation and renewed hostilities. Although crude prices eased, investors remained cautious about inflation fears that lifted US Treasury yields and supported the dollar, both of which weighed on demand for non-yielding precious metals.

The Federal Reserve’s relatively hawkish stance, combined with a still-resilient labour market and sticky inflation expectations driven by the recent rise in oil prices, reduced expectations of near-term rate cuts and pushed the implied probability of a September rate hike to roughly 63 per cent.

Iran’s Revolutionary Guard turned back tankers in the Strait of Hormuz, while Saudi Arabia convened 43 countries to form a maritime coalition to protect Red Sea shipping following a Houthi blockade. Market participants noted that a sustained ceasefire could ease pressure on energy prices, improve broader risk sentiment and provide additional support to precious metals.

Immediate resistance for Comex gold is placed at $4,160–$4,180, with support at $4,090–$4,070. For MCX gold, immediate resistance is seen at Rs 1,44,000–Rs 1,44,300 and support at Rs 1,43,000–Rs 1,43,300.

Investors will closely monitor upcoming US inflation and labour market data, Federal Reserve commentary, Treasury yield movements and the US Dollar Index for further clues on the interest-rate outlook.