Gold Falls Sharply Amid Strong Dollar And Heavy Profit Booking

Gold prices declined by 5.89 per cent during the week as persistent profit booking and a strengthening US dollar dragged prices lower.

On Friday, MCX gold April futures edged up by 0.23 per cent, whereas MCX silver May futures slipped by 1.72 per cent. Gold futures traded at ₹1,44,825, while silver futures stood at ₹2,27,470 per kilogram.

Data released by the India Bullion and Jewellers Association showed that the price of 10 grams of 24-carat gold fell to ₹1,47,218 on Friday from ₹1,56,436 earlier in the week, indicating a notable drop.

Analysts expect precious metals to remain under pressure in the coming sessions following a sharp correction and mixed global signals, particularly from developments in the Middle East.

Earlier gains driven by safe-haven demand have weakened as volatility increased in global markets. Rising tensions, including actions by Israel and retaliatory measures by Iran, have pushed up energy prices and heightened concerns about global inflation.

Interest Rate Outlook Adds Pressure

Central banks such as the US Federal Reserve, Bank of Japan, Bank of Canada, and Bank of England have maintained a cautious to hawkish stance, signalling the possibility of higher or sustained interest rates, which typically weighs on gold.

Experts observed that MCX gold is moving closer to lower support levels after a sustained rally. Resistance is expected around ₹1,50,000 to ₹1,52,000, while ₹1,35,000 to ₹1,40,000 is likely to act as a strong demand zone.

Despite recent losses, silver continues to show an overall positive trend, supported by a balance between safe-haven demand and industrial usage.

MCX silver extended its correction during the week and is testing the ₹2,20,000 to ₹2,15,000 demand range. Analysts believe prices could move towards ₹2,40,000 if buying momentum improves.

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