Gold and Silver Prices Slip Amid Strong Dollar and US-Iran Tensions

During a shortened trading week, gold futures on the Multi Commodity Exchange slipped roughly 2%, closing near Rs 1.5 lakh per 10 grams, while silver fell almost 4% to Rs 2.25 lakh per kilogram. In the United States, December Comex gold contracts dropped $158.9, about 3.7%, and silver fell $4.38, roughly 6.7%. Analysts attributed the weakness to a robust US dollar, higher Treasury yields and ongoing US-Iran tensions that dampen safe-haven demand.

They noted that a sustained dollar level above 102 or further yield hikes could keep pressure on bullion, whereas any reversal might provide relief. Market participants will also watch the Reserve Bank of India's policy meeting, where a 25-basis-point rate increase is anticipated, along with upcoming services PMI data and US trade figures for additional cues.