Mumbai, May 9: Gold prices have seen a notable increase this week, rising by 1.83% amid geopolitical uncertainty and fluctuations in crude oil prices.
On the last trading day of the week, Friday, MCX Gold June futures recorded a slight gain of 0.04%, trading at ₹152,589 per 10 grams. Meanwhile, MCX Silver July futures surged by 1.34%, or ₹3,459, reaching ₹261,999 per kilogram.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 999 purity gold on Friday was ₹151,078 per 10 grams, up from ₹148,357 when the market opened on Monday. This marks an increase of ₹2,721 over the week.
For silver, the IBJA reported that the price for 999 purity on Friday was ₹255,600 per kilogram, compared to ₹244,237 at the start of the week. This indicates a rise of ₹11,363 in silver prices over the same period.
The IBJA’s figures show a consistent upward trend in silver prices this week. While gold prices experienced some fluctuations, they have recorded gains for three consecutive sessions.
The primary drivers behind this trend are expectations of a potential peace agreement between the U.S. and Iran, coupled with a weakening U.S. dollar, which has mitigated the impact of strong U.S. employment data.
Recent U.S. employment figures indicated that job growth in April exceeded expectations, while the unemployment rate remained stable at 4.3%. This suggests that the U.S. labor market remains robust, potentially leading the Federal Reserve to maintain higher interest rates for an extended period.
Analysts warn that prolonged high interest rates from the central bank could exert pressure on non-yielding assets like gold.
In international markets, Comex Gold climbed nearly $50, reaching a session high of $4,760 per troy ounce, reflecting a weekly increase of about 1.5%. Market experts attribute this rise to reduced regional tensions and increased demand for gold due to a weaker dollar.
Since the onset of the U.S.-Iran conflict on February 28, gold and silver prices have declined by approximately 10%.
Despite this, analysts note that demand for gold as a safe-haven investment remains strong. However, stability in the dollar and a growing risk appetite in the market have somewhat tempered the pace of gains.
Concerns about potential disruptions to commodity supply in the Hormuz Strait continue to be a significant worry for the market. Nevertheless, after recent volatility, the market appears to be entering a phase of technical stability.
Currently, precious metals are showing mixed trends, with gold and silver attempting to stabilize after recent declines.
Tensions in West Asia have escalated following attacks between U.S. and Iranian forces near the Strait. However, U.S. officials have stated that a ceasefire is still in effect.
Analysts suggest that for MCX Gold, immediate resistance is seen between ₹154,000 and ₹155,500, while support levels are identified between ₹150,000 and ₹148,000. For MCX Silver, the key resistance level is ₹265,000, with immediate support between ₹260,000 and ₹258,000.
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