Gold and silver prices showed limited movement in early trading on Friday, September 25, following several sessions of weakness. Recent gains in the US dollar and higher Treasury yields have continued to put pressure on precious metals.
COMEX gold rose 0.66% to $4,326.50 per ounce, while COMEX silver increased 0.43% to $64.280 an ounce. During the session, gold traded between $4,299.30 and $4,331 per ounce. Silver moved in the range of $64 to $64.530 an ounce.
The slight recovery came as investors assessed ongoing geopolitical tensions in West Asia along with expectations over the direction of US interest rates.
Oil Prices Ease After Previous Session’s Rise
Crude oil prices moved lower on Friday after recording a sharp increase in the previous trading session. Brent crude declined 0.69% to $105.85 a barrel, while West Texas Intermediate (WTI) fell 0.86% to $93.80.
Markets were closely watching the possibility of a diplomatic breakthrough between the US and Iran, even as attacks in the region continued.
Developments in West Asia remain important for precious metals. Increased uncertainty can encourage demand for safe-haven assets such as gold. However, stronger oil prices can also increase inflation concerns and potentially keep interest rates elevated, which may put pressure on assets such as gold that do not generate interest.
Gold Records Fourth Straight Session of Losses
Gold ended lower for the fourth consecutive session on Thursday, September 24.
On the MCX, October gold futures declined ₹833, or 0.55%, to ₹1.50 lakh per 10 grams. Comex gold also fell 0.42% to $4,300.47 per ounce during the previous session.
Aamir Makda, Commodity & Currency Analyst – Technical Research at Choice Broking, attributed the recent weakness in gold to the stronger US dollar and rising Treasury yields.
Ashish Rajodiya, Head of Commodities at PL Capital, said the outlook for interest rates was competing with geopolitical risks as a key influence on bullion prices.
According to comments cited in a PTI report, the US dollar index had risen to around 101, while the yield on the US 10-year Treasury had moved closer to 5.11%.
What Could Influence Gold Prices Next?
Investors are expected to keep an eye on US economic data, movements in Treasury yields, the dollar and expectations surrounding Federal Reserve policy. Developments in West Asia will also remain an important factor for the bullion market.
In India, international gold prices are also affected by movements in the rupee against the US dollar. Changes in the currency exchange rate can influence domestic bullion prices as well as gold futures traded on the MCX.
Disclaimer
Gold and silver prices can fluctuate during market hours and may vary across locations and trading platforms. The information provided in this article is intended for general informational purposes only and should not be treated as investment or financial advice. Readers should check the latest prices from authorised market sources before making any investment-related decision.