Gold prices experienced a decline of almost 1.82% over the week, reflecting investor caution amidst significant dollar fluctuations. On Friday, MCX gold futures for February rose by 0.20%, while MCX silver futures for March surged by 3.62%. Currently, gold futures are at Rs 1,56,200, with silver futures at Rs 2,44,999 per kg.
Data from the India Bullion and Jewellers Association (IBJA) revealed that the price of 10 grams of 24-carat gold stood at Rs 1,52,765 on Friday, down from Rs 1,55,593 at the beginning of the week. Despite an initial positive trend on Friday, gold prices remained volatile and weak due to a sharp decline from Rs 1,58,000 to Rs 1,54,000, failing to sustain levels above Rs 1,60,000.
Jateen Trivedi, VP Research Analyst at LKP Securities, noted that resistance is now established near Rs 1,60,000. If gold continues trading below Rs 1,56,000, a retest of the Rs 1,51,000 support level could be anticipated. The rebound in gold and silver prices on Friday was supported by softer-than-expected US CPI data, which exerted pressure on the US dollar.
Analysts highlighted structural supply deficits and increasing industrial demand for silver in green energy, EVs, AI, and electronics, maintaining a bullish outlook. They also observed consistent gold accumulation by central banks. Market experts predict a 3-5 year bullish trend for gold and silver, driven by favorable macroeconomic conditions, demand patterns, and changing investor preferences.
However, they advised investors to include gold and silver as part of a diversified portfolio, allocating 10-15% to precious metals. Incremental investments should be considered during correction periods, according to analysts.
