Gold plummets 5.89 pc this week amid profit booking, dollar surge

New Delhi: Gold prices dipped 5.89 per cent during the week, over successive sessions of profit booking and stronger dollar.

On Friday, MCX gold April futures added 0.23 per cent while MCX silver May futures declined 1.72 per cent. Currently gold futures stand at Rs 1,44,825, while silver futures at Rs 2,27,470 per kg.

The price of 10 grams of 24-carat gold was at Rs 1,47,218 on Friday, down from Rs 1,56,436 seen on Monday, according to data published by the India Bullion and Jewellers Association (IBJA).

Precious metals are set to enter the upcoming week under visible pressure, following a sharp corrective phase amid mixed signals from ongoing Middle East geopolitical developments, analysts said.

While safe-haven demand had earlier supported the rally, recent volatility has impacted investors’ sentiment, they added.

Israel’s strikes on Iran’s South Pars gas field and Iran’s retaliatory attacks on energy infrastructure across Gulf nations, has pushed crude oil and natural gas prices, raising the possibility of imported inflation globally.

The US Federal Reserve, the Bank of Japan, the Bank of Canada, and the Bank of England indicated a cautious-to-hawkish approach indicating higher or unchanged interest rates going ahead. The possibility of interest rate hike puts downward pressure on precious metals, market observers said.

The MCX Gold prices are now approaching lower support levels after a sustained multi-week uptrend with resistance now placed near Rs 1,50,000 to Rs 1,52,000 levels while Rs 1,35,000 to Rs 1,40,000 continues to act as a solid demand zone, they noted.

The broader bullish bias of silver remains intact, supported by a balance between safe-haven demand and industrial demand.

MCX Silver extended its sharp corrective decline during the week, and it is testing the Rs 2,20,000 to Rs 2,15,000 demand zone and a recovery toward Rs 2,40,000 is possible if buying strength improves, they said.

IANS