Gold and silver prices traded lower in the international markets on Thursday as a recovery in the US dollar and Treasury yields weighed on investor sentiment following stronger-than-expected US jobs data. The weakness in bullion prices was mirrored in the domestic market, with MCX gold and silver futures also trading lower.
Robust US labour market data for January dampened expectations of near-term interest rate cuts by the US Federal Reserve. This supported the dollar and US Treasury yields, exerting pressure on non-yielding assets such as gold and silver.
Spot gold price edged 0.3% lower to $5,064.90 per ounce, while US gold futures for April delivery lost 0.2% to $5,086.30 per ounce. Spot silver price fell 0.5% to $83.59 per ounce, after a 4% climb on Wednesday.
In the domestic market, MCX gold price traded lower by 0.29% at ₹1,58,289 per 10 grams level. MCX silver price was down by ₹2,017, or 0.77%, at ₹2,61,001 per kilogram.
The US dollar index edged higher, making dollar-priced metals more expensive for other currency holders. Meanwhile, the benchmark 10-year US Treasury yield rebounded from a near one-month low of 4.125% touched on Wednesday to 4.179% on Thursday.
Impact of rising Treasury yields on gold and silver
The uptick in Treasury yields reflects expectations that the Federal Reserve may keep interest rates higher for longer after US employment data showed the economy began 2026 on a stronger footing than anticipated.
US job growth rose by 130,000 in January, significantly higher than the downwardly revised 48,000 increase in December, while the unemployment rate declined to 4.3%.
“The recovery in the US 10-year Treasury yield from its recent one-month low is creating near-term pressure on precious metals. Higher yields raise the opportunity cost of holding non-interest-bearing assets such as gold and silver, while a firmer dollar further limits upside in international bullion prices,” said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
According to him, MCX gold price for April futures may witness resistance at higher levels unless yields retreat again, whereas silver price could remain comparatively volatile due to its industrial exposure.
“Traders should monitor US macro data, real yield trends, and dollar movement closely, as any reversal in yields could swiftly revive buying interest across domestic bullion contracts,” said Trivedi.
Gold Price Outlook
Comex gold price is consolidating above key moving averages, suggesting the corrective phase may be maturing.
“Strong buying interest is visible in the $4,500 – $4,700 support zone. Stability above this region could pave the way for renewed upside momentum. A breakout above $5,200 – $5,300 would strengthen the case for a retest of record highs,” said Ponmudi R, CEO of Enrich Money.
For MCX gold price, he believes the broader uptrend structure is still supportive, with prices holding above major long-term support areas.
“Strong demand is seen in the ₹1,45,000 – ₹1,50,000 band. A sustained hold above this base, followed by a breakout above ₹1,60,800, could revive bullish momentum towards ₹1,65,000 – ₹1,75,000. Medium-term outlook remains positive despite volatility,” he added.
Silver Price Outlook
COMEX silver price is currently trading in the $80–$87 zone after a steep correction from record highs above $121. While the higher timeframe structure remains bullish, the sharp pullback has pushed prices below key moving averages, reflecting short-term bearish pressure.
“Strong buying interest is observed in the $65–$70 support band, aligned with prior swing lows and long-term trend support. A sustained hold above this base, followed by a recovery and close above $85–$92, could revive upside momentum towards $95–$105 and eventually a retest of previous highs. The medium- to long-term outlook remains constructive, supported by structural supply constraints and steady industrial demand, though volatility remains elevated,” said Ponmudi R.
For MCX silver price, strong support is seen in the ₹2,25,000 – ₹2,60,000 band, aligned with prior structural bases. A sustained hold above this region, followed by a decisive recovery, could trigger upward momentum towards ₹3,00,000 – ₹3,25,000, he added.
“Dips towards support may continue to offer accumulation opportunities for positional participants, though a decisive breakdown below this zone could extend the correction further,” he said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
