Gold and silver prices started the day flat but saw a slight decrease on Friday due to profit-taking following recent highs and a stronger US dollar. MCX gold April futures dropped by 0.14% to Rs 1,60,046 per 10 grams, while MCX silver May futures fell by 0.19% to Rs 2,67,448 per kg.
Despite the decline, safe-haven demand due to the US-Iran conflict and high crude oil prices provided some support to the market. Analysts noted that gold prices today were influenced by news related to the US-Iran conflict, the US dollar exchange rate, and movements in oil prices.
The ongoing tensions in the US-Israel conflict with Iran have led to higher energy prices and inflation concerns, resulting in increased flows into the US dollar and bond yields. According to Manav Modi, a Commodities Analyst at Motilal Oswal Financial Services Ltd., these factors have impacted the gold market.
Ponmudi R, CEO of Enrich Money, mentioned that while gold has entered a short-term corrective phase after reaching record highs, the overall bullish trend remains intact. The current consolidation phase has caused prices to dip below some short-term moving averages, indicating a temporary slowdown in momentum.
Global equity market weakness also played a role in putting pressure on gold prices as investors sold off positions to manage cash flow during market volatility. The strengthening of the US dollar by 0.07% to 99.81 cent made dollar-priced gold more expensive for holders of other currencies.
Brent crude was trading at $99.99 per barrel, showing a decrease of 0.47%, while West Texas Intermediate (WTI) dropped by 0.67% to $95.09 per barrel. US Treasury Secretary Scott Bessent announced a temporary authorization to allow countries to purchase Russian oil stranded at sea to enhance global supply.
An analyst highlighted that MCX Gold has support levels at Rs 1,56,000 to Rs 1,57,000 and resistance levels at Rs 1,75,000 and Rs 1,80,000. For MCX silver, support is at Rs 2,58,000 and Rs 2,60,000, with resistance at Rs 2,78,000 and Rs 2,80,000.
