Gold prices fell by 5.89% over the week due to profit booking and a stronger dollar. On Friday, MCX gold April futures rose by 0.23%, while MCX silver May futures decreased by 1.72%. Currently, gold futures are at Rs 1,44,825, and silver futures at Rs 2,27,470 per kg.
The price of 10 grams of 24-carat gold was Rs 1,47,218 on Friday, down from Rs 1,56,436 on Monday, as reported by the India Bullion and Jewellers Association (IBJA). Analysts anticipate precious metals to face pressure in the upcoming week due to recent geopolitical developments in the Middle East.
Recent volatility has impacted investor sentiment despite earlier support from safe-haven demand. Israel’s strikes on Iran’s South Pars gas field and Iran’s retaliatory attacks on energy infrastructure in Gulf nations have led to increased crude oil and natural gas prices, potentially causing global inflation.
Central banks like the US Federal Reserve, Bank of Japan, Bank of Canada, and Bank of England have hinted at a cautious-to-hawkish approach, signaling potential interest rate hikes. This could exert downward pressure on precious metals, according to market observers.
MCX Gold prices are nearing lower support levels after a sustained uptrend, with resistance around Rs 1,50,000 to Rs 1,52,000. The Rs 1,35,000 to Rs 1,40,000 range continues to serve as a strong demand zone. Silver’s bullish bias remains supported by a balance between safe-haven and industrial demand.
MCX Silver experienced a significant decline during the week, testing the demand zone of Rs 2,20,000 to Rs 2,15,000. Analysts suggest a potential recovery towards Rs 2,40,000 if buying strength improves.
