Gold prices increased by 1.65% over the week, marking consecutive gains, driven by safe haven purchases and a weaker US dollar due to reduced inflation concerns and the initiation of US-Iran ceasefire talks. MCX gold June futures saw a 0.02% rise, while MCX silver May futures edged up by 0.01%. Currently, gold futures are at Rs 1,52,690, and silver futures at Rs 2,43,300 per kg.
The price of 10 grams of 24-carat gold reached Rs 1,50,327 on Friday, up from Rs 1,47,891 at the beginning of the week, as reported by the India Bullion and Jewellers Association (IBJA). Analysts observed that COMEX gold closed at $4,787.40 per troy ounce, showing a 3% increase weekly, with expectations of a strong bull run after surpassing the $5,000 mark.
Market players mentioned that the US dollar faced pressure post the US-Iran truce, prompting a reassessment of US interest rate projections. The decline in crude oil prices following the de-escalation raised hopes of lower inflation, leading to speculations about potential US Federal Reserve rate cuts in the near future.
Throughout the week, the commodities market maintained a cautious stance, influenced by stable price movements and ongoing macroeconomic uncertainties. A market expert highlighted that precious metals exhibited early signs of stability post recent fluctuations. Currency fluctuations, especially in the USD/INR pair, are expected to play a crucial role, with the recent strength of the rupee providing some support to domestic commodity prices. Any shift in currency trends, driven by global risk sentiments or renewed dollar strength, could impact future price actions.
MCX Gold prices are currently above the key support range of Rs 1,48,000 to Rs 1,46,000, with an immediate resistance level around Rs 1,54,000 to Rs 1,55,000. Similarly, MCX Silver prices are holding above the support range of Rs 2,30,000 to Rs 2,25,000, with stronger support near Rs 2,05,000 to Rs 2,00,000, according to the analyst.
