Mumbai, May 9: Gold prices have seen a notable increase of 1.83% this week, driven by geopolitical uncertainties and fluctuations in crude oil prices. On the last trading day of the week, MCX Gold June futures recorded a slight rise of 0.04%, trading at ₹1,52,589 per 10 grams. Meanwhile, MCX Silver July futures surged by 1.34%, or ₹3,459, reaching ₹2,61,999 per kilogram.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 999 purity gold was ₹1,51,078 per 10 grams on Friday, up from ₹1,48,357 at the start of the week, marking an increase of ₹2,721 over the week. Silver prices also rose significantly, with 999 purity silver priced at ₹2,55,600 per kilogram on Friday, compared to ₹2,44,237 at the beginning of the week, reflecting a jump of ₹11,363.
The rise in gold prices can be attributed to hopes for a potential peace agreement between the United States and Iran, alongside a weakening US dollar, which has mitigated the impact of strong US employment figures. Recent employment data indicated that job growth in April exceeded expectations, while the unemployment rate remained steady at 4.3%, suggesting a robust US labor market that may lead the Federal Reserve to keep interest rates elevated for an extended period.
Analysts warn that prolonged high interest rates could exert pressure on non-yielding assets like gold. In the international market, Comex gold rose nearly $50 to reach a session high of $4,760 per troy ounce, reflecting a weekly gain of approximately 1.5%. Market experts attribute the increased demand for gold to expectations of reduced regional tensions and a weaker dollar.
Since the onset of the US-Iran conflict on February 28, gold and silver prices have dropped by about 10%. Despite this, the demand for gold as a safe-haven investment remains strong, although stability in the dollar and a growing risk appetite in the market have slightly tempered the upward momentum.
Concerns about potential disruptions to commodity supply in the Hormuz Strait continue to loom large in the market. However, after recent volatility, the market appears to be entering a phase of technical stability. Currently, a mixed trend is observed in precious metals, with gold and silver attempting to stabilize after recent declines.
Tensions in West Asia have escalated following attacks near the strait between US and Iranian forces, although US officials have stated that a ceasefire is still in effect. Analysts consider the immediate resistance level for MCX Gold to be between ₹1,54,000 and ₹1,55,500, while support levels are seen between ₹1,50,000 and ₹1,48,000. For MCX Silver, the key resistance level is ₹2,65,000, with immediate support between ₹2,60,000 and ₹2,58,000.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
