In the bullion market, gold and silver prices continued to face sustained pressure during the week amid expectations of prolonged higher rates, developments in West Asia, and a stronger US dollar. The Federal Reserve kept its key policy rate unchanged on Wednesday. However, nearly half the central bank’s policymakers indicated that they could support a rate hike later this year.

 

The notably hawkish Summary of Economic Projections strengthened the US dollar, pushing the Dollar Index to 101 and US treasury yields higher during the week. This, in turn, weighed on bullion prices by reducing the appeal of non-yielding assets such as gold and silver.

 

At the Multi Commodity Exchange, Gold futures for the August contract shed 2.2 percent during the week to settle at 1,47,203 rupees per 10 grams. Meanwhile, Silver futures for the July contract dropped 5.3 percent to close at 2,33,185 rupees per kilogram.

At the Commodity Exchange (COMEX), Gold futures for the August contract slipped more than one and a half percent during the week to settle at around 4,173 dollars per troy ounce. Silver futures for the July contract lost 4.5 percent over the week to end at 64.91 dollars per troy ounce.