Overview
- This week markets reacted to the US Treasury’s decision to at least double long-dated debt buybacks to $4 billion per operation, a move that helped push long-term Treasury yields lower and weakened the dollar.
- Gold and silver rose more than 5% on the week, with spot gold back near three-month highs around $4,600–$4,660 per ounce and Indian MCX levels climbing toward Rs 1.60 lakh per 10 grams and Rs 2.50 lakh per kg for silver.
- Geopolitical tensions linked to US–Iran rhetoric and worries about oil and inflation sent additional safe-haven flows into bullion and helped amplify the rally.
- Strong structural demand from central-bank purchases and inflows into gold ETFs has bolstered prices even as some analysts warn that the next leg depends on incoming US economic data and Federal Reserve guidance at events such as the Jackson Hole meeting.
- Higher local prices are already cooling retail physical demand in India, while analysts offer conditional year‑end upside scenarios near $4,700–$5,000 per ounce if yields stay low and safe‑haven demand persists.