Gold trades near $4,150 globally and ₹1.49 lakh on MCX, while silver remains under pressure as higher US yields reduce the appeal of non-yielding assets

Gold and silver prices came under pressure on Tuesday as a stronger US dollar and a sharp rise in US Treasury bond yields outweighed support from weaker employment data. The combination of a firmer dollar and higher yields has increased the opportunity cost of holding precious metals, leading to renewed selling pressure in both bullion markets.

In the international market, Comex gold was trading near $4,150 per ounce, while silver was around $61 per ounce. In India, gold futures on the Multi Commodity Exchange (MCX) were trading near ₹1,49,300 per 10 grams, while silver futures were around ₹2,25,600 per kg.

Gold Opens Lower on MCX

Gold futures started Tuesday's session on a weaker note. The benchmark December gold contract opened ₹388 lower at ₹1,48,928 per 10 grams, compared with the previous close of ₹1,49,316.

The contract later traded around ₹1,49,166, down ₹150 from the previous close.

Despite the recent correction, gold remains significantly above levels seen earlier in the year. However, the metal has moved sharply away from its 2026 peak of ₹1,80,779 per 10 grams, reflecting a substantial correction from record levels.

Strong Dollar Creates Pressure on Bullion

The recovery in the US dollar has emerged as one of the key factors weighing on precious metals.

Gold and silver are internationally priced in dollars. When the US currency strengthens, bullion becomes relatively more expensive for investors holding other currencies, potentially reducing demand.

The dollar's strength has therefore added to selling pressure at a time when investors are also reassessing expectations for US monetary policy.

US Bond Yields Rise Sharply

Higher US Treasury yields have added another headwind for gold and silver.

Unlike bonds and other interest-bearing assets, precious metals do not generate regular income. As yields rise, the relative attractiveness of holding non-yielding assets tends to decline.

The recent rise in US yields has consequently encouraged some investors to reduce exposure to bullion, particularly after the strong rally recorded earlier in the year.

The market is now closely watching US economic data for signals about the Federal Reserve's next policy moves. Any indication that interest rates could remain elevated for longer could keep yields and the dollar firm, potentially limiting near-term gains in precious metals.

Silver Also Trades Lower

Silver futures followed gold lower during Tuesday's session.

On the MCX, the benchmark December silver contract opened ₹960 lower at ₹2,25,127 per kg, compared with the previous close of ₹2,26,087. The contract was later trading around ₹2,25,601, down ₹486.

In the international market, Comex silver opened at $61.39 per ounce against the previous close of $61.30. It later traded around $61.02.

Silver has also experienced a sharp correction from its 2026 peak of $121.79 per ounce, indicating that volatility in the precious-metals market remains exceptionally high.

Technical Picture Turns Mixed

Technical indicators suggest that gold is currently facing renewed selling pressure.

According to Kedia Advisory, open interest in gold increased 2.3 per cent to 16,322 contracts while prices declined by ₹1,074. The combination indicates fresh bearish participation rather than merely profit booking by existing positions.

Gold currently has support around ₹1,48,385 per 10 grams. A sustained break below this level could push prices towards ₹1,47,445.

On the upside, resistance is placed around ₹1,50,730. A decisive move above that level could open the way towards ₹1,52,135.

Silver Shows Signs of Short Covering

Silver's technical structure is somewhat different from gold.

Kedia Advisory noted that silver was showing signs of short covering, with open interest declining 0.81 per cent to 16,450 while prices gained ₹210. Such a combination can indicate that traders are closing bearish positions following recent weakness.

MCX silver has immediate support near ₹2,24,895 per kg. A sustained break below this level could take prices towards ₹2,23,700.

On the upside, resistance is seen around ₹2,27,990. A decisive move above this level could strengthen the recovery towards ₹2,29,890.

Global Factors Remain Critical

The direction of gold and silver over the coming sessions will depend heavily on movements in the dollar, US Treasury yields and expectations surrounding Federal Reserve policy.

Geopolitical uncertainty, inflation concerns and central-bank buying remain important structural supports for gold. However, these factors could struggle to offset the impact of a sustained rise in real yields and a stronger dollar in the short term.

Silver has an additional driver because of its industrial applications. Demand from solar energy, electronics, electric vehicles and other industrial sectors can influence the metal independently of traditional investment demand.

Gold and Silver Outlook

The recent decline in precious metals reflects a shift in the short-term balance of power between safe-haven demand and macroeconomic pressures. A stronger dollar and rising US bond yields are currently dominating sentiment, while weaker employment data has provided only limited support.

For gold, ₹1,48,385 is an important near-term support level on MCX. A break below it could increase selling pressure, while a move above ₹1,50,730 would indicate improving momentum.

Silver is also approaching an important technical zone, with ₹2,24,895 acting as immediate support and ₹2,27,990 as a key resistance level.

Market Outlook

Gold and silver are likely to remain volatile as investors track US yields, the dollar and changing expectations for Federal Reserve policy. Gold could remain under pressure if Treasury yields continue to rise, while silver may find some support from short covering and industrial demand.

In the near term, traders will closely watch whether gold holds ₹1,48,385 and whether silver manages to defend ₹2,24,895. A recovery above their respective resistance levels could trigger renewed buying, but a decisive breakdown of support could extend the correction.

For investors, the sharp distance from this year's highs underlines the importance of volatility management. The next major direction for bullion will depend less on its previous record levels and more on the trajectory of US yields, the dollar, interest-rate expectations and global risk sentiment.