prices declined on Monday, with MCX Gold trading near ₹1,58,547 per 10 grams, as a stronger US dollar and rising Treasury yields continued to pressure precious metals. Spot gold hovered around $4,540 per ounce globally, having shed 3.7 per cent over the previous week.
The sell-off was triggered by hotter-than-expected US inflation data. April CPI rose 0.6 per cent month-on-month and 3.8 per cent annually, while PPI posted a 1.4 per cent monthly increase, reinforcing fears of sustained price pressures. Markets have since begun pricing out Federal Reserve rate cuts and are now considering the possibility of additional tightening, with the effective Fed funds rate projected to rise toward 3.92 per cent by March 2027.
The 10-year Treasury yield climbed to 4.54 per cent, its highest level of 2026, while the dollar index advanced to multi-week highs above 99. Both moves reduced the appeal of non-yielding assets such as gold and silver. Silver fell more sharply, dropping over 5 per cent to close near $76 per ounce globally, with MCX Silver settling around ₹2,71,886 per kilogram.
Geopolitical tensions in West Asia, including ongoing conflict affecting Gulf energy infrastructure, drove Brent crude above $109 per barrel — a weekly gain of nearly 8 per cent. While such uncertainty would typically support gold, analysts at Kotak Neo noted that the inflationary impact of elevated crude prices is instead reinforcing tighter monetary policy expectations, acting as a headwind for bullion.
Technically, Gold Jun futures are consolidating above the key support zone of ₹1,54,200, with analysts maintaining a positive bias above that level. Resistance is seen at ₹1,64,300. Markets this week will watch the FOMC meeting minutes, Philly Fed Manufacturing Index, and weekly jobless claims for further direction.