Blurb: Gold prices climbed for a third straight week, aided by safe-haven demand, weaker dollar trends, easing inflation concerns, and optimism around geopolitical developments and rate cuts
New Delhi
Gold prices rose 1.65 per cent during the week, marking their third consecutive weekly gain, driven by safe-haven buying and a weaker US dollar. The uptrend was supported by easing inflation concerns and early signs of progress in US-Iran ceasefire negotiations.
futures on the Multi Commodity Exchange of India showed marginal gains, with gold June contracts rising 0.02 per cent and silver May futures edging up 0.01 per cent. Gold futures were trading at Rs 1,52,690, while silver stood at Rs 2,43,300 per kg.
According to data from the India Bullion and Jewellers Association, the price of 10 grams of 24-carat gold increased to Rs 1,50,327 on Friday, compared to Rs 1,47,891 at the start of the week.
In global markets, COMEX gold settled at $4,787.40 per troy ounce, gaining around 3 per cent for the week. Analysts see strong resistance near the $5,000 mark, beyond which a sustained bull run could emerge.
Market participants attributed the dollar’s weakness to easing geopolitical tensions and expectations of a more accommodative stance by the Federal Reserve. Falling crude oil prices have further strengthened hopes of lower inflation.
Analysts noted that currency movements, especially in the USD/INR pair, will remain crucial for domestic prices. Recent rupee strength has provided some support, though any reversal could impact future trends.
Technically, MCX gold holds support between Rs 1,48,000 and Rs 1,46,000, with resistance near Rs 1,54,000–1,55,000. Silver is supported between Rs 2,30,000 and Rs 2,25,000, with deeper support at Rs 2,05,000–2,00,000.
