Key Takeaways:
Precious metals declined across the board Friday as rising Treasury yields lifted the US dollar, with COMEX gold falling and silver extending its weekly losses.
"The move lower in gold and silver is a direct function of rising real yields, which increase the opportunity cost of holding non-yielding assets," said Ole Hansen, head of commodity strategy at Saxo Bank.
In Mumbai, silver traded at ₹2,230 per 10 grams, down 1.6% from the previous session, according to data from the India Bullion and Jewellers Association. One kilogram of silver fell to ₹2,23,026, a decline of ₹3,566 from Thursday's close. The pullback extends a volatile period for the white metal, which has fallen 14.8% since June 1, when it traded at ₹2,65,651 per kilogram.
The stronger dollar added further pressure on dollar-denominated commodities. A rising greenback makes bullion more expensive for holders of other currencies, dampening demand. Silver has been the hardest hit among the three metals this week, with COMEX silver declining alongside the spot market.
Silver's dual role as both a monetary and industrial asset has amplified its decline, as concerns about global growth weigh on industrial demand. The metal remains well above its levels from a year ago — it traded at ₹1,20,320 per kilogram in Mumbai in July 2025, compared with ₹2,23,026 today — but has given back much of the gains from its January rally, when prices surged 61% to hit ₹4,12,311 per kilogram.
Gold has held up relatively better than silver during the pullback, supported by ongoing geopolitical tensions in the Middle East. The US and Iran remain in talks after a ceasefire breakdown, with Qatari negotiators visiting Iran this week to revive negotiations, according to media reports. Platinum also declined, tracking the broader precious metals selloff.
The next catalyst for the sector is the US consumer price index release, which will shape expectations for the Federal Reserve's policy path. Higher-for-longer rate expectations have been the dominant macro headwind for precious metals this week, as traders weigh the impact of sticky inflation against safe-haven demand from geopolitical uncertainty.
This article is for informational purposes only and does not constitute investment advice.
