Gold and Silver See Steep Weekly Plunge as Surging US Bond Yields and Macro Data Rattle Bullion Markets After gold slumped by Rs 3,500 and silver dropped Rs 6,907 last week, precious metals face another volatile stretch driven by US jobs data and multi-year high Treasury yields. Precious metals experienced intense selling pressure over the past trading week, leaving bullion investors bracing for another stretch of elevated volatility. Both domestic and global commodity markets witnessed sharp corrections across gold and silver contracts as macroeconomic headwinds gathered pace. Market watchers project that the near-term trajectory of both metals will largely hinge on incoming economic reports from the United States, developing tensions across West Asia, and the ongoing supply dynamics within global crude oil markets. Investors are closely tracking key American macro releases, including consumer confidence readings, updated gross domestic product numbers, and the personal consumption expenditures price gauge. Furthermore, inflation metrics across the Eurozone, manufacturing PMI surveys, upcoming commentary from Federal Reserve officials, and American employment releases will collectively establish the broader trading tone. Crucial US Employment Data and Federal Reserve Expectations Labor market statistics from the United States represent the next significant hurdle for precious metals. Jatin Trivedi, Commodity and Currency Research Analyst at LKP Securities, pointed out that market participants will maintain a sharp focus on US non-farm payroll figures alongside the broader unemployment rate. These releases are considered vital because they will heavily influence market expectations ahead of the Federal Reserve monetary policy deliberations scheduled for October. A robust set of employment figures would indicate resilience in the American economy, reinforcing arguments that interest rates could stay elevated or even see upward pressure, thereby dampening gold prices. Conversely, if payroll figures reflect softness in job creation, speculation around higher interest rates would ease, potentially weakening the US dollar and offering much-needed support to precious metal benchmarks. Sharp Retracement Across MCX and COMEX Contracts The extent of the previous week's selloff was evident across domestic and international exchanges. On India's Multi Commodity Exchange, the benchmark gold futures contract for October delivery suffered a steep drop of Rs 3,500, representing a decline of approximately 2.3 percent, pushing prices down to Rs 1.50 lakh per 10 grams. Silver experienced an even harsher selloff on the domestic exchange, where futures prices tumbled by Rs 6,907, or roughly 3 percent, to settle at Rs 2.34 lakh per kilogram. Trading on the global platform COMEX mirrored this negative sentiment. The December gold futures contract registered a weekly loss of $103.7, or 2.34 percent, closing out the period at $4,321.2 per ounce. Concurrently, silver futures on COMEX slid by $2.35, or 3.5 percent, to settle at $64.80 per ounce. This synchronized retreat indicates broad institutional de-risking and consolidation across international trading desks following recent price rallies. Multi-Year High Treasury Yields and Energy Market Influence The downward momentum in gold is being driven by broader financial tightening rather than foreign exchange movements alone. Pranav Mer, Senior Vice President for Commodity and Currency Research at JM Financial Services, observed that pressure on bullion stems well beyond currency fluctuations. The US 10-year Treasury yield has surged to its highest mark since 2007, while the 30-year bond yield hovers near peaks last recorded in 2004. Elevated long-term sovereign bond yields present fierce competition for non-yielding assets, noticeably reducing investment demand for physical gold and silver across institutional portfolios. At the same time, crude oil price movements remain an essential variable within the macroeconomic mix. Despite targeted military strikes between Russia and Ukraine aimed at regional energy infrastructure, global crude availability has improved this month. This stability is largely attributable to expanded petroleum shipments arriving from Saudi Arabia and Iraq, which have alleviated localized supply anxieties and exerted downward pressure on crude prices. Lower energy costs tend to soften inflation expectations, thereby diminishing gold's immediate appeal as a hedge against rising living costs. In addition to these fundamental factors, traders must account for a truncated trading schedule in the domestic market, as commodity exchanges will remain closed on Friday, October 2 in observance of Gandhi Jayanti. What this means for you The steep decline in bullion prices and spiking sovereign bond yields create clear actionable consequences for physical buyers and derivative traders alike. • For retail jewelry buyers: Gold dropping by Rs 3,500 per 10 grams and silver sliding by Rs 6,907 per kilogram lowers immediate entry costs. Prospective buyers planning wedding or festive purchases can benefit if forthcoming economic data pushes prices lower. • For commodity traders: Benchmark US yields trading around multi-decade highs continue to weigh on non-yielding precious metals. Investors holding leveraged long positions should maintain strict risk controls ahead of high-impact US employment reports. • For domestic market timing: Domestic trading will operate on a shortened calendar week across Indian exchanges. Because commodity bourses will be closed on Friday, October 2 for Gandhi Jayanti, traders must adjust contracts and margin requirements ahead of the holiday. • For macroeconomic inflation: Increased crude supplies originating from Saudi Arabia and Iraq are helping keep global energy costs capped. Stable or falling oil prices will alleviate broad inflationary pressures, directly benefiting households and transportation expenses. Why this happened The simultaneous slump in gold and silver was triggered by a confluence of rising bond yields, currency dynamics, and steadying energy markets. • Surging sovereign yields: US 10-year Treasury yields climbed to their highest levels since 2007, while 30-year yields approached thresholds unseen since 2004. Soaring yields on risk-free government debt directly sap institutional capital away from non-interest-bearing precious metals. • Monetary policy expectations: Uncertainty surrounding the Federal Reserve's rate path ahead of its October review weighed on market sentiment. Strong economic and employment momentum threatens to delay interest rate reductions, which inherently supports the dollar while pushing gold lower. • Crude oil market easing: Despite ongoing attacks on energy infrastructure by Russia and Ukraine, boosted production from Saudi Arabia and Iraq kept oil markets adequately supplied. Dampened crude prices eased headline inflationary expectations, diminishing the immediate need for gold as an inflation hedge. Questions & Answers 1. How much did gold prices fall on the domestic exchange last week? Gold futures for October delivery on the MCX fell by Rs 3,500, or about 2.3 percent, closing at Rs 1.50 lakh per 10 grams. 2. What was the magnitude of the weekly drop in silver prices? Silver futures on the MCX dropped by Rs 6,907, or roughly 3 percent, settling at Rs 2.34 lakh per kilogram. 3. Where did gold and silver settle on the global COMEX exchange? COMEX gold fell by $103.7 to $4,321.2 per ounce, while COMEX silver fell by $2.35 to finish at $64.80 per ounce. 4. Why are US Treasury yields hurting precious metal prices? The US 10-year yield touched its highest level since 2007 and 30-year yields reached multi-decade highs, making interest-bearing bonds more attractive than bullion. 5. On which day will Indian commodity markets remain closed this week? Commodity exchanges in India will be closed on Friday, October 2 in observance of Gandhi Jayanti. https://trendkia.com/en/business/gold-aura-silver-men-ai-teja-giravata-ke-bada-kya-isa-haphte-thamega-utara-charhava-samajhen-bajara-ka-pura-ganita-39748 TrendKia — Har trend, sabse pehle.