New Delhi, March 28 Gold prices rose by 5.77 per cent during the week, amid sustained geopolitical tensions and a decline in crude oil prices.
On Friday, MCX gold April futures increased by 0.15 per cent while MCX silver May futures declined by 0.09 per cent. Currently, gold futures are at Rs 1,44,500, while silver futures are at Rs 2,27,750 per kg.
The price of 10 grams of 24-carat gold was at Rs 1,42,942 on Friday, up from the Rs 1,35,141 seen at the market opening on Monday, according to data published by the India Bullion and Jewellers Association (IBJA).
Gold spot prices dipped slightly on the last day of trading as a strong US dollar weighed on the market.
MCX gold in India showed a steady recovery from a weekly low of Rs 1,29,595 per 10 gram, while COMEX gold closed above $4,500 per troy ounce.
Analysts said that the recent dip in gold came as traders sold bullion to raise cash amid losses in risk assets, but the underlying upward momentum remains strong as the central bank continues to buy bullion and geopolitical risks underpin prices.
Furthermore, elevated US Treasury yields also reduced the relative appeal of non-yielding assets like gold during the week.
Analysts noted that a pullback in Brent crude from near $120 per barrel to about $93 per barrel earlier in the week eased inflation fears and helped gold rebound from oversold levels.
Traders remain cautious as near-term swings are likely to be sharp, driven by news from the Middle East, volatile crude prices, and central bank policy signals.
"The commodities market enters the week in a phase of measured stabilization following last week's sharp correction," an analyst said.
"The recent decline has eased overbought conditions, with prices now attempting to rebuild momentum amid mixed global cues, including a firm US dollar and evolving geopolitical developments in the Middle East," he added.
MCX Gold prices are trading near support levels after a sustained multi-week uptrend, with the Rs 1,36,000–Rs 1,40,000 zone acting as a strong base, a market participant said.
Resistance is now placed near the Rs 1,55,000 to Rs 1,60,000 levels, he added.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.