Mumbai: Gold and silver prices surged up to 3 per cent this week supported by softer crude oil prices that eased concerns over energy driven inflation.
On the Multi Commodity Exchange (MCX), gold futures (October) rose 0.84 per cent or Rs 1,282 to Rs 1,54,263 per 10 grams on Friday. The yellow metal touched an intraday high of Rs 1,54,600 and an intraday low of Rs 1,52,171 during the session.
Meanwhile, silver futures (December) gained 0.16 per cent to Rs 2,42,000 per kg. The white metal touched an intraday high of Rs 2,43,047 and an intraday low of Rs 2,38,173.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold stood at Rs 1,53,727 per 10 grams on Friday, an increase of Rs 1,789 or over 1 per cent from Rs 1,51,938 on September 11.
On the other hand, silver rose 3.16 per cent or Rs 7,266 from Rs 2,29,642 on Thursday to Rs 2,36,908 per kg.
However, on a weekly basis, the white metal was up Rs 7,988 or 3.48 per cent from Rs 2,28,920 on September 11.
Analysts said precious metals remained under pressure at the beginning of the week amid supply-related risks in the Middle East and signals from the US Federal Reserve. Higher US bond yields, driven by expectations of tighter monetary policy, weighed on non-yielding assets such as gold.
However, crude oil prices declined for three consecutive sessions during the week and fell below $100 a barrel.
Markets assessed that the impact of the closure of a key Saudi Arabian pipeline on supplies would be lower than initially feared. This eased concerns over energy inflation and provided support to gold.
Also, the relief was short-lived as a more hawkish-than-expected stance by the US Federal Reserve weighed on market sentiment.
The Fed raised its policy rate by 25 basis points this week, taking the federal funds rate to a range of 3.75 per cent to 4 per cent.
Most signals from Fed officials indicated that monetary tightening could continue further this year.
Market experts said silver outperformed gold during the week, supported by expectations of a supply deficit for the sixth consecutive year. Silver supply is estimated to fall short of demand by around 46.3 million ounces in 2026.
Technically, analysts see the $4,470-$4,500 per ounce zone as a key near-term resistance for COMEX gold, while $4,300-$4,340 is considered an important support zone.
For MCX gold, the Rs 1,54,000-Rs 1,54,700 range is seen as an immediate resistance zone, while Rs 1,50,000-Rs 1,50,700 is expected to provide strong support.
Experts said investors will closely track US interest rates, bond yields and global geopolitical developments in the coming days, which are likely to play a key role in determining the direction of gold and silver prices.
(IANS)
