Weekly Gold Review: COMEX futures slide under $3900 mark to approach one-year low

Precious metals tanked amid a sharp uptick in US treasury yields. COMEX Gold futures climbed around $4160 per ounce, hitting around two-week high but flipped direction amid a stronger US dollar and rising Treasury yields as markets increasingly priced in a more aggressive Federal Reserve tightening cycle. Hotter-than-expected US consumer inflation and hawkish remarks from Fed officials, including suggestions of a possible 50-basis-point rate hike. The US dollar index held above 103 after advancing for three consecutive sessions to its highest level since April 2025. The US treasury yields continued to gain, adding to upside after an elevated US inflation data. The benchmark 10-year Treasury yield broke well above 5% mark and hit three-week high. Cleveland Federal Reserve President Beth Hammack stated that we need to move to a restrictive stance of policy to help bring inflation back down to that 2% objective, which is critically important. Federal Reserve Bank of New York President John Williams said inflation is far too high and that the Fed still needs to do more to bring prices back to its 2% target in a timely and sustained way. Federal Reserve Bank of San Francisco President Mary Daly, Federal Reserve Bank of Chicago President Austan Goolsbee and Federal Reserve Bank of Kansas City President Jeff Schmid also voiced concerns the same day about elevated inflation. Gold fell under $3900 per ounce and ended down 4.60% for the week, nearing its lowest level in one year and completely reversing the 4.50% gain seen in prior week. COMEX Silver also melted under $50 per ounce mark. MCX Gold crashed under Rs 140000 per 10 grams mark and approached lows around Rs 136000 per 10 grams amid sliding global prices and a firm Indian Rupee.

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