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by IANS |
New Delhi, March 28 (IANS) Gold prices gained 5.77 per cent during the week, amid sustained geopolitical tensions and pull back in crude oil prices.
On Friday, MCX gold April futures added 0.15 per cent while MCX silver May futures declined 0.09 per cent. Currently, gold futures stand at Rs 1,44,500, while silver futures at Rs 2,27,750 per kg.
The price of 10 grams of 24-carat gold was at Rs 1,42,942 on Friday, up from Rs 1,35,141 seen on Monday market opening, according to data published by the India Bullion and Jewellers Association (IBJA).
Gold spot prices dipped marginally on the last day of the trading as a strong US dollar weighed on the market.
MCX gold in India showed a steady recovery from a weekly low of Rs. 1,29,595 per 10 gram, while COMEX gold ended above $4,500 per troy ounce.
Analysts said that the recent dip in gold came as the traders sold bullion to raise cash amid risk?asset losses but the underlying upside momentum remains strong as the central bank continues bullion buying and geopolitical risk underpin prices.
Further, elevated US Treasury yields had also reduced the relative appeal of non?yielding assets like gold during the week.
Analysts noted that a pullback in Brent crude from near $120 per barrel to about $93 per barrel earlier in the week eased inflation fears and helped gold rebound from oversold levels.
Traders remain cautious as near?term swings are likely to be sharp, driven by news from the Middle East, volatile crude prices and central bank policy signals.
"The commodities market enters the week in a phase of measured stabilisation following last week’s sharp correction," an analyst said.
"The recent decline has eased overbought conditions, with prices now attempting to rebuild momentum amid mixed global cues, including a firm US dollar and evolving geopolitical developments in the Middle East," he added.
The MCX Gold prices are trading near support levels after a sustained multi-week uptrend with Rs 1,36,000– Rs 1,40,000 zone acting as a strong base, a market participant said.
Resistance now placed near Rs 1,55,000 to Rs 1,60,000 levels, he added.
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