New Delhi: Gold prices declined 0.73 per cent during the week as investors booked profits after the metal touched multi-week highs, while a stronger US dollar and shifting interest-rate expectations weighed on sentiment.
On Friday, gold futures on the Multi Commodity Exchange of India (MCX) edged down 0.04 per cent, while silver futures for March delivery dropped 3.24 per cent. Gold futures were trading around Rs 1,58,400, while silver futures stood at Rs 2,59,279 per kg.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold was Rs 1,58,399 on Friday, compared with Rs 1,59,568 on Monday, reflecting the weekly decline.
Analysts said precious metal prices struggled to hold higher levels as the US dollar strengthened and expectations regarding interest rates shifted. However, geopolitical tensions have continued to support safe-haven demand for gold.
Market participants noted that crude oil prices remain elevated due to supply disruption concerns, which could push inflation higher and maintain interest in gold as an inflation hedge.
Trading during the week also saw intermittent profit-taking and intraday volatility across several commodities, with investors remaining active around key technical levels.
Adding to market uncertainty, the United States reportedly struck military targets at Kharg Island, a major oil export hub of Iran that handles nearly 90 per cent of the country’s oil shipments, raising fresh concerns about energy supply disruptions.
Despite geopolitical tensions — which usually support precious metals — analysts said gains in gold and silver were limited by a strong US dollar and rising US Treasury yields.
Technically, resistance for MCX gold is seen near Rs 1,63,000–Rs 1,63,200, while Rs 1,58,000–Rs 1,57,500 is expected to act as a strong demand zone.
For silver, analysts noted that MCX prices continued to correct after failing to hold above the Rs 2,80,000–Rs 2,92,000 resistance zone, with Rs 2,58,000–Rs 2,54,000 likely to serve as a key support level.
With inputs from IANS