New Delhi, June 6: Gold prices fell by 0.87% this week following better-than-expected employment figures from the United States, raising concerns that the Federal Reserve may maintain high interest rates for an extended period. On the last trading day of the week, Friday, gold futures for August delivery dropped by 2.47% on the Multi Commodity Exchange (MCX), while silver futures for July delivery saw a significant decline of 6.27%. Currently, gold futures are trading at ₹1,55,600 per 10 grams, and silver at ₹2,48,201 per kilogram.
According to data from the India Bullion and Jewelers Association (IBJA), the price of 999 purity gold was ₹1,54,238 per 10 grams on Friday, down from ₹1,55,599 at the beginning of the week. This marks a decrease of ₹1,361 in gold prices over the week. Similarly, the price of 999 purity silver was ₹2,56,908 per kilogram, down from ₹2,63,250 at the start of the week, reflecting a drop of ₹6,342.
In the international market, gold on COMEX fell to a low of $4,369 per troy ounce, marking its weakest level since late March, with a weekly decline of nearly 5%. Silver prices also fell by $5.34, reaching $68.63 per troy ounce, indicating a nearly 9% drop over the week, marking the fourth consecutive week of decline.
The strong employment data has pushed the dollar index up to around 99.5, along with an increase in U.S. Treasury bond yields, which has weakened the demand for non-interest-bearing investments like gold and silver.
Market experts suggest that inflation in the U.S. remains above the Federal Reserve’s target, raising the likelihood of interest rate hikes in 2026 and reinforcing the perception that rates may remain high for longer than previously expected. Analysts note that the situation for silver appears weaker compared to gold, with ongoing selling pressure due to profit-taking and concerns over industrial demand.
Experts indicate that while gold has shown some strength around key support levels, caution persists in the silver market. According to market analysts, gold is currently trading near the support level of $4,350 on COMEX, with the resistance range identified between $4,460 and $4,500.
They also highlighted that geopolitical developments in West Asia, crude oil supply conditions, movements in the U.S. dollar, comments from central banks, and key economic data will play a crucial role in determining the future direction of gold and silver prices.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.