Gold prices increased by 0.23% over the week due to factors like global economic conditions and safe haven demand. On Friday, MCX gold futures rose by 0.07%, while MCX silver futures saw a 4.41% increase. Currently, gold futures are at Rs 1,56,993, and silver futures stand at Rs 2,52,042 per kg.
The price of 10 grams of 24-carat gold on Friday was Rs 1,54,080, slightly down from Rs 1,54,483 on Monday, as per data from the India Bullion and Jewellers Association (IBJA). The removal of additional margins in domestic futures markets led to higher speculative activity, pushing prices up.
Both the MCX and the NSE eliminated the extra margins on Gold Futures and Silver Futures, leading to increased market participation and intraday trading activity. Analysts noted that the commodities market began the week with controlled consolidation after significant moves in energy and metals.
Metals are trading within rising channel frameworks, with resistance levels near Rs 1,55,000. The short-term demand zone is now in the Rs 1,52,000– Rs 1,53,000 range, reflecting repeated absorption at higher levels. Structural supply deficits and industrial demand for silver from green energy, EVs, AI, and electronics continue to support its bullish bias.
While silver prices have been volatile due to demand-supply imbalances and profit-taking, gold prices have remained relatively high. Despite a stronger dollar and changing interest-rate expectations from the US Federal Reserve, geopolitical tensions are expected to boost risk-averse flows, leading to a rally in gold and silver prices.
A recent report suggested that gold and silver are in a 3-5 year bull run, backed by favorable macroeconomic conditions and demand trends.
