New Delhi, March 14: This week, gold and silver prices experienced significant fluctuations amid rising tensions in West Asia and instability in global markets. Gold prices fell by 0.73% over the week as investors began profit-taking after reaching multi-week highs.
On Friday, gold futures on the MCX dropped by 0.04%, while silver futures saw a substantial decline of 3.24%. Currently, gold futures are priced around ₹158,400, and silver futures are at approximately ₹259,279 per kilogram.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold was ₹158,399 per 10 grams on Friday, down from ₹159,568 on Monday. Meanwhile, silver was priced at ₹260,488 per kilogram on the same day.
Experts attribute the decline in precious metal prices to the strengthening of the US dollar and shifting expectations regarding interest rates. However, demand for gold remains supported by geopolitical uncertainties, which drive investors toward safe-haven assets.
Market analysts note that crude oil prices remain high, with concerns over supply disruptions potentially increasing inflation risks. In this context, gold continues to attract investors as a hedge against inflation.
They also observed that while profit-taking and intraday fluctuations occurred across various commodities, market activity remained robust around key technical levels.
In related news, the US targeted military bases on Kharg Island, Iran’s main oil export hub, raising concerns about energy supply disruptions.
Analysts indicate that the strong US dollar and rising US Treasury yields limited the price increases for gold and silver last week, despite historical trends showing price surges during wartime conditions.
From a technical perspective, the resistance level for MCX Gold is seen between ₹163,000 and ₹163,200, while a strong demand zone exists between ₹158,000 and ₹157,500.
For MCX Silver, the price failed to hold above the resistance zone of ₹280,000 to ₹292,000, continuing its downward trend. Analysts suggest that the critical support area for silver lies between ₹258,000 and ₹254,000.
Overall, the environment remains unstable due to news of potential US-Iran conflict, fluctuations in the US dollar, and oil prices, which have all impacted precious metals.
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