Gold prices rose by 5.77% over the week due to ongoing geopolitical tensions and a decline in crude oil prices. On Friday, MCX gold April futures saw a 0.15% increase, while MCX silver May futures slightly dropped by 0.09%. Currently, gold futures are at Rs 1,44,500 and silver futures at Rs 2,27,750 per kg.
The price of 10 grams of 24-carat gold reached Rs 1,42,942 on Friday, up from Rs 1,35,141 at the beginning of the week, as reported by the India Bullion and Jewellers Association (IBJA). Gold spot prices experienced a slight decrease on the last trading day due to a strong US dollar’s impact on the market.
In India, MCX gold showed a steady recovery from a weekly low of Rs. 1,29,595 per 10 grams, while COMEX gold closed above $4,500 per troy ounce. Analysts mentioned that the recent drop in gold prices was influenced by traders selling bullion to generate cash amidst risk-asset losses, but the overall positive momentum remains strong with central bank bullion purchases and geopolitical risks supporting prices.
Moreover, the increase in US Treasury yields reduced the attractiveness of non-yielding assets like gold during the week. The pullback in Brent crude prices from around $120 per barrel to approximately $93 per barrel earlier in the week alleviated inflation concerns and aided gold in recovering from oversold levels.
Traders are exercising caution as sharp near-term fluctuations are expected, driven by developments in the Middle East, volatile crude prices, and signals from central banks. An analyst noted that the commodities market is currently in a phase of measured stabilization following a significant correction last week. Prices are now trying to regain momentum amidst mixed global cues, including a strong US dollar and evolving geopolitical situations in the Middle East.
Market participants mentioned that MCX Gold prices are hovering near support levels after a sustained multi-week uptrend, with the Rs 1,36,000– Rs 1,40,000 range serving as a strong base. Resistance levels are now seen near Rs 1,55,000 to Rs 1,60,000.
