Gold Climbs During Week As Global Tensions Support Safe-Haven Demand

Gold prices recorded strong gains during the week as investors turned to safe-haven assets following continued geopolitical uncertainty and fluctuations in crude oil prices.

Gold rose 1.83 per cent over the week, while silver also witnessed sharp movement in domestic futures markets.

On Friday, MCX gold June futures edged up 0.04 per cent, whereas MCX silver May futures advanced 1.34 per cent. Gold futures were trading at Rs 1,52,589, while silver futures stood at Rs 2,61,999 per kilogram.

According to figures released by the India Bullion and Jewellers Association, the price of 24-carat gold increased from Rs 1,48,357 per 10 grams at the start of the week to Rs 1,51,078 on Friday.

Market analysts said precious metals extended gains for a fourth straight session. Optimism surrounding a possible US-Iran peace understanding and weakness in the US dollar supported prices. The factors outweighed the impact of stronger-than-expected American jobs data.

Employment figures from the United States showed job growth in April exceeded forecasts, while unemployment remained at 4.3 per cent.

The data strengthened expectations that the US Federal Reserve could keep interest rates elevated for a longer period. This usually limits gains in non-yielding assets such as gold.

In international trade, Comex gold rose nearly $50 and touched around $4,760 per troy ounce. The metal also registered a weekly gain of about 1.5 per cent.

Gold and silver prices have recovered slightly in recent sessions. They, however, remain nearly 10 per cent lower than the levels seen at the beginning of the US-Iran conflict on 28 February.

Analysts said concerns surrounding the Strait of Hormuz continued to influence market sentiment. Renewed tensions between US and Iranian forces also weighed on investor confidence. Signs of consolidation have, however, emerged after weeks of volatility.

Experts placed immediate resistance for MCX gold between Rs 1,54,000 and Rs 1,55,500, while support is likely near Rs 1,50,000 to Rs 1,48,000. For silver, resistance is seen around Rs 2,65,000, with support between Rs 2,60,000 and Rs 2,58,000.

Also Read: Gold, Silver Prices Jump As Fresh US-Iran Tensions Shake Global Markets