Gold Market
Gold rose above $4,150 in European trade on Tuesday, bouncing from a two-month low near $4,100. A pause in the dollar’s rally and receding Fed rate-hike bets offered support, but headwinds persist.
Gold is trading just below $4,150, little changed on Monday, as the US dollar rallies to its strongest level since April 2025. Disappointing US jobs data and geopolitical tensions are pulling the metal in opposite directions.
Gold trades in a narrow range below $4,200 during the European session on Friday as traders await the US Nonfarm Payrolls report for fresh directional cues.
Gold fell roughly 2% on Monday as it challenged the $4,200 support level. The decline was driven by geopolitical tensions and rising expectations of a Federal Reserve rate hike, which supported the US dollar.
Gold retreated from a daily high of $4,376 to trade at $4,337 on Tuesday. A stronger US Dollar, rising Treasury yields, and hawkish Fed bets weighed on the metal.
Gold and silver saw increased trading volume even without fresh economic data on Yom Kippur. Analyst Ira Epstein points to geopolitical talks and yield curve shifts as key influences.
Iran has proposed reopening the Strait of Hormuz if the US eases military pressure. Analysts say this could lower oil prices and support gold, affecting Indian markets.
Gold and silver snapped a two-day rally on the MCX, with gold down Rs 1,331 per 10 grams and silver down Rs 1,600 per kg amid US-Iran tensions and central bank rate hikes.
Analysts expect gold to trade in a narrow range next week as markets shift focus to manufacturing and services PMI data from major economies, with the dollar and geopolitical tensions also in view.