New Delhi, March 21 Gold prices fell by 5.89% during the week, due to consecutive profit-booking sessions and a stronger dollar.
On Friday, MCX gold April futures rose by 0.23%, while MCX silver May futures declined by 1.72%. Currently, gold futures are at ₹1,44,825, while silver futures are at ₹2,27,470 per kg.
According to data released by the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold was ₹1,47,218 on Friday, down from ₹1,56,436 seen on Monday.
Analysts said that precious metals are expected to enter the upcoming week under pressure, following a sharp correction amid mixed signals from ongoing Middle East geopolitical developments.
While safe-haven demand had previously supported the rally, recent volatility has impacted investors' sentiment, they added.
Israel's strikes on Iran's South Pars gas field and Iran's retaliatory attacks on energy infrastructure across Gulf nations have pushed crude oil and natural gas prices, raising the possibility of imported inflation globally.
The US Federal Reserve, the Bank of Japan, the Bank of Canada, and the Bank of England have indicated a cautious-to-hawkish approach, suggesting higher or unchanged interest rates going forward. The possibility of interest rate hikes puts downward pressure on precious metals, market observers said.
MCX gold prices are now approaching lower support levels after a sustained multi-week uptrend. Resistance is now placed near ₹1,50,000 to ₹1,52,000, while ₹1,35,000 to ₹1,40,000 continues to act as a solid demand zone, they noted.
The bullish bias of silver remains intact, supported by a balance between safe-haven demand and industrial demand.
MCX silver extended its sharp corrective decline during the week, and it is testing the ₹2,20,000 to ₹2,15,000 demand zone. A recovery toward ₹2,40,000 is possible if buying strength improves, they said.
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