Gold and silver prices were largely subdued on the Multi Commodity Exchange today morning, as a firmer U.S. dollar and elevated Treasury yields countered support from softer-than-expected U.S. inflation data.

The July inflation figures eased expectations of a Federal Reserve rate hike in September, a development that would normally provide support to non-yielding assets such as gold. But bullion markets remained restrained as investors weighed the prospect of higher-for-longer interest rates against the latest inflation reading.

MCX gold October futures were up 0.05% at Rs 1,54,960 per 10 grams, while September silver contracts slipped 0.16% to Rs 2,37,450 a kilogram

The dollar index reclaimed the 100.02 level, making dollar-denominated bullion more expensive for buyers holding other currencies. The greenback has gained about 0.50% this week, adding to pressure on precious-metals demand.

Higher Treasury yields also limited gold’s appeal. The benchmark U.S. 10-year Treasury yield rose to 4.69%, increasing the opportunity cost of holding an asset that generates no interest.

The competing forces have left bullion markets in a holding pattern. While softer inflation has strengthened the case for monetary easing, a resilient dollar and elevated bond yields continue to constrain upside momentum in gold and silver.

For now, traders appear reluctant to make aggressive bets, leaving bullion prices vulnerable to further moves in the dollar and U.S. rates.