Last week saw the prices of silver and gold ease in London as a stronger U.S. dollar reduced the precious metals’ recent gains. The greenback climbed to its highest level since late July, while government bonds and stocks globally also retreated after their post-Federal Reserve rebound.
Gold priced in U.S. dollars ended the week almost unchanged, while silver maintained much of its recent advance at around $66.30 an ounce, nearly $2 higher.
U.S. Treasury yields also moved higher, with the benchmark 10-year yield returning above 5%. That matched the high reached before the Federal Reserve’s latest meeting. The Fed raised its Fed Funds rate by 0.25 percentage points to 3.88%, in line with market expectations.
The decision came as U.S. inflation remained at 3.7% in July based on the PCE Measure preferred by the Federal Reserve. President Donald Trump subsequently called for interest rates to be reduced rapidly, arguing that the rates needed to be 1% or lower.
Financial markets remained under pressure. The MSCI World Index fell approximately 0.7% while the S&P 500 declined about 0.4% over the week.
At London’s 3pm gold benchmark last week, gold stood at $4,351 a troy ounce, down nearly 1% from the previous week. The decline came as the U.S. Dollar Index, or DXY, advanced 1.4% during the week, its strongest weekly increase since August 2025.
Gold performed better against other major currencies. Prices in both euros and sterling gained about 0.5%, respectively reaching roughly €3,796 and £3,260 an ounce. Silver also got to about $67 an ounce at London’s midday benchmark, its highest Friday fixing thus far into the month.
The price of oil remained largely unchanged for the week after reaching a four-month high on closing earlier. Supply concerns continued after Saudi Arabia told European refineries that shipments would not be available next month, with Houthi attacks allegedly backed by Iran contributing to tight supplies.
In China, gold reached a one-week high at ¥947 a gram. The Shanghai premium over London prices narrowed to $13 an ounce from $20 a day earlier, but averaged nearly $16 for the week. That was the strongest incentive for Chinese gold imports since May, pointing to firm demand.
India showed weaker buying interest. Gold traded at about a $60-an-ounce discount to international prices, improving from $75 the previous week. Despite the approaching festival season, Indian jewelers remained cautious while retail buyers were reportedly waiting for lower prices.
Overall, the stronger dollar and elevated U.S. yields continued to weigh on gold in dollar terms despite stronger demand signals from China. Gold-linked firms like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) are likely to keep a close eye on the DXY as the dollar trajectory could continue influencing gold prices in the near term.
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