New Delhi: Gold prices dipped 0.34 per cent during the week after precious metals came under corrective pressure due to profit booking.
On Friday, MCX gold June futures gained 0.61 per cent while MCX silver May futures inched up 1.39 per cent. Currently gold futures stand at Rs 1,52,683, while silver futures at Rs 2,44,877 per kg.
The price of 10 grams of 24-carat gold was at Rs 1,51,479 on Friday up from Rs 1,52,002 seen on Monday market opening, according to data published by the India Bullion and Jewellers Association (IBJA).
However, gold advanced towards the end of the week as optimism grew around advancements in United States and Iran negotiations. Traders also weighed the Federal Reserve’s interest rate path after the Justice Department dropped a probe related to the Federal Reserve.
Bullion climbed above $4,700 an ounce as bond yields fell, easing pressure on non yielding assets.
Selective buying was seen in precious metals at lower levels, but momentum remained tentative as geopolitical uncertainty lingered without a clear resolution, analysts said on Saturday.
Iran’s Foreign Minister Abbas Araghchi is in Islamabad and US envoys also on the way, creating chances of diplomatic deadlock being lifted, multiple media reports said. However, Iranian officials denied they plan to hold talks with US delegates.
Although safe-haven demand eased slightly on expectations of continued negotiations, underlying risks helped limit the downside, analysts said, adding that precious metals may remain vulnerable to further consolidation in the absence of fresh safe-haven triggers.
Any renewed geopolitical escalation or shift in global dollar dynamics could amplify volatility in domestic commodity prices on the MCX, market participants said.
COMEX gold traded near the $4,720–$4,750 zone, up 3 per cent on a weekly basis, however a major resistance was ahead of $5,000, after which they predicted a strong bull run.
COMEX Silver is currently trading near the $75–$76 zone, indicating consolidation with a slight negative bias after failing to sustain recent highs, analysts said.
(IANS)
