Gold Prices Surge Nearly 6% This Week As Geopolitical Tensions Support Rally

Gold prices recorded a robust weekly advance of 5.77 per cent, supported by persistent geopolitical concerns and a retreat in crude oil prices.

On Friday, MCX Gold April futures edged up 0.15 per cent, while MCX Silver May contracts slipped 0.09 per cent.

Gold futures hovered near Rs 1,44,500, while silver traded around Rs 2,27,750 per kg.

Data from the India Bullion and Jewellers Association showed that 24-carat gold prices rose to Rs 1,42,942 per 10 grams on Friday, compared to Rs 1,35,141 at the week’s opening.

Spot gold eased slightly on the final trading day as a firm US dollar exerted pressure.

Domestic gold futures rebounded steadily from a weekly low of Rs 1,29,595 per 10 grams.

Internationally, COMEX Gold remained above $4,500 per troy ounce.

Analysts observed that earlier declines stemmed from profit booking, as investors liquidated bullion to cover losses in risk assets.

Despite this, underlying momentum remains intact, aided by sustained central bank purchases and geopolitical uncertainties.

Elevated US Treasury yields, however, reduced the appeal of non-yielding assets such as gold during the period.

A notable decline in Brent crude, from near $120 to about $93 per barrel, eased inflationary pressures and supported a recovery in bullion prices.

Market participants expect continued volatility, driven by Middle East developments, oil price fluctuations, and central bank policy cues.

Gold currently trades near key support levels between Rs 1,36,000 and Rs 1,40,000, while resistance is seen in the Rs 1,55,000 to Rs 1,60,000 range.

Also Read: High Gold Prices Shift Demand From Jewellery To Investment In India: Report