Gold prices fell by 1.36% over the week due to a steady dollar and robust US inflation figures, hinting at potential interest rate hikes by the US Federal Reserve. MCX gold June futures dropped by 0.59%, with MCX silver May futures also declining by 0.94%. Currently, gold futures are at Rs 1,56,000, while silver futures stand at Rs 2,67,000 per kg.
The price of 10 grams of 24-carat gold decreased to Rs 1,56,463 on Friday from Rs 1,58,622 at the beginning of the week, as reported by the India Bullion and Jewellers Association (IBJA). The dollar index saw a slight increase of about 0.10%, while US personal consumption expenditures (PCE) surged by 3.8% year-on-year in April, marking the fastest growth since May 2023, reinforcing expectations of potential US Fed rate hikes.
Analysts noted that gold and silver are still attracting safe-haven and value-based buying near key technical levels, but their upward momentum is closely tied to US monetary policy expectations, bond yields, and the US dollar’s trajectory. Rising energy prices are driving inflation, increasing the chances of Fed tightening, which diminishes gold’s attractiveness as investors turn to assets with yields.
Recent US Fed meeting minutes revealed a growing openness among officials to the idea of rate hikes. COMEX Gold is currently trading between $4,570 and $4,600, showing a consolidation phase with a cautious tone in weekly price movements. Market participants highlighted immediate resistance levels in the $4,600–$4,650 range, with critical support at $4,400–$4,350. For MCX Gold, immediate resistance is seen in the Rs 1,60,000 to Rs 1,62,000 range, while the Rs 1,54,000–Rs 1,52,000 region remains a crucial support zone.
