Mumbai, May 9 (IANS). Gold prices rose 1.83 percent this week amid geopolitical uncertainty and fluctuations in crude oil prices.
On Friday, the last trading day of the week, MCX Gold June Futures registered a rise of 0.04 percent, and were seen trading at Rs 1,52,589 per 10 grams, while MCX Silver July Futures saw a rise of 1.34 percent, i.e. Rs 3,459, and were seen trading at Rs 2,61,999 per kilogram.
According to data from India Bullion and Jewelers Association (IBJA), the price of gold of 999 purity stood at Rs 1,51,078 per 10 grams on Friday, which was Rs 1,48,357 at the time of market opening on Monday. That means, an increase of Rs 2,721 has been recorded in the prices of gold in a week.
If we talk about silver, according to IBJA, the price of 999 purity silver was Rs 2,55,600 per kg on Friday, which was Rs 2,44,237 per kg at the time of market opening on Monday. That means, in a week the rate of silver increased by Rs 11,363.
According to IBJA data, silver prices have registered a continuous rise this week. Although there was some fluctuation in the prices of gold, but this week gold has registered gains in three consecutive sessions.
This was mainly due to expectations of a possible peace deal between the US and Iran and weakness in the US dollar, which mitigated the impact of strong US employment data.
US employment data showed that employment increased more than expected in April, while the unemployment rate remained stable at 4.3 percent. This indicated that the US labor market remains strong and the US Federal Reserve may keep interest rates high for a long time.
Analysts say that if central banks keep interest rates high for a long time, it could put pressure on non-interest bearing assets like gold.
In the international market, Comex Gold rose by about $ 50 to reach a session high of $ 4,760 per troy ounce. During this period, a weekly increase of about 1.5 percent was recorded. According to market experts, demand for gold increased due to expectations of easing regional tensions and weak dollar.
After the start of the US-Iran conflict, gold and silver prices have fallen by about 10 percent since February 28.
Analysts say that the demand for gold as a safe investment still remains, but due to stability in the dollar and increased risk taking sentiment in the market, the pace of growth has slowed down a bit.
The fear of disruption in commodity supply in the Strait of Hormuz remains the biggest concern of the market at present. However, after recent major fluctuations, the market now appears to be entering a period of technical stability.
Precious metals are currently seeing a mixed trend, with gold and silver trying to stabilize after recent falls.
Tensions in West Asia rose again on Thursday after attacks between US and Iranian forces near the strait. However, US officials said the ceasefire was still in force.
According to analysts, the level of Rs 1,54,000 to Rs 1,55,500 is being considered as the immediate resistance for MCX Gold, while the range of Rs 1,50,000 to Rs 1,48,000 is the important support level.
At the same time, for MCX Silver, the level of Rs 2,65,000 is the main resistance, while the range of Rs 2,60,000 to Rs 2,58,000 is being considered as immediate support.
–IANS
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