New Delhi: Gold prices surged 0.86 per cent on a weekly basis as slew of weaker‑than‑expected US economic data reinforced expectations that the US Federal Reserve will hold interest rates unchanged.
On Friday, MCX gold futures (October) gained 0.73 per cent and stood at Rs 154,590. On the other hand, MCX silver futures (September) advanced 0.15 per cent and stood at Rs 2,36,272 per kg.
Moreover, the price of 10 grams of 24-carat gold was at Rs 1,49,621 on Friday, up from Rs 1,42,863 seen on Monday at market opening, according to data published by the India Bullion and Jewellers Association (IBJA).
Gold and silver also benefited from crude oil staying volatile on lingering Middle East tensions, lower Treasury yields and a weaker US dollar, market participants said.
The yellow metal climbed to its highest level in over two months before modest profit-taking later in the week, finally posting a monthly gain of more than 10 per cent.
Similarly, the white metal advanced and modestly outperformed gold, narrowing the gold-silver ratio.
According to commodity market experts, immediate resistance is placed at $4,470–$4,500 for COMEX gold, while support lies at $4,400–$4,370.
For MCX Gold, immediate resistance is placed at Rs 1,55,500–Rs 1,56,000, while the support lies at Rs 1,53,300–Rs 1,52,700, they added.
Crude oil rebounded sharply from the previous week’s sell-off as hopes for a near-term resolution to the US-Iran standoff over the Strait of Hormuz faded.
Although crude oil prices retreated from its mid-week highs, both WTI and Brent posted solid weekly gains.
Investors remain keen on minutes of the Federal Reserve’s July policy meeting, due on August 19, and developments surrounding the Strait of Hormuz.
Additionally, July consumer inflation remained broadly contained with core CPI easing to 2.5 per cent, reinforcing expectations that the Federal Reserve is likely to leave interest rates unchanged at its September meeting.
(IANS)
