Gold prices increased by 1.31% over the week due to rising tensions between the US and Iran, coupled with a surge in crude oil prices, leading investors to seek safe-haven assets.
On the commodity exchange, MCX gold August futures rose by 0.17%, while MCX silver September futures saw a 1.33% increase. Gold futures settled at Rs 1,43,066, and silver futures at Rs 2,22,301 per kg.
The price of 10 grams of 24-carat gold reached Rs 1,43,781 on Friday, up from Rs 1,41,915 at the start of the week, as reported by the India Bullion and Jewellers Association (IBJA).
Risk premiums for precious metals rose amidst escalating US-Iran tensions and attacks on tankers in the Red Sea, which pushed crude prices higher.
Gold and silver prices fluctuated within a range later in the week due to inflation concerns sparked by energy price shocks. These concerns, along with rising US Treasury yields and a stronger dollar, dampened demand for non-interest-bearing precious metals.
US President Donald Trump reiterated his threat of a significant attack on Iran, further fueling market uncertainties.
Brent crude prices surged nearly 9.8% during the week, briefly surpassing $100 per barrel, following claims by Yemen’s Houthi rebels of attacks on Saudi tankers in the Red Sea, contributing to the rally in gold prices.
Investors also anticipated a more hawkish policy stance from the Federal Reserve, given the potential impact of higher energy costs on inflation.
Silver prices experienced fluctuations, supported by steady industrial demand, particularly from the solar and electric vehicle sectors. However, gains moderated towards the end of the week as markets adjusted expectations for US interest rate hikes.
US Treasury yields rose as Brent crude surpassed $100 per barrel, while weekly unemployment insurance claims fell below 200,000.
Market participants identified immediate resistance levels for COMEX gold at $4,140–$4,160, with support at $4,000–$3,980. For MCX gold, resistance was seen at Rs 1,45,500–Rs 1,46,6000, and support at Rs 1,42,000–Rs 1,41,500.
Investors are closely monitoring the upcoming US Federal Reserve policy meeting on July 28–29 for insights into the future direction of commodity markets.
