Gold dips 0.73 pc this week amid profit booking, dollar surge
New Delhi, March 14
Gold prices dipped 0.73 per cent during the week, following bouts of profit booking after touching multi-week highs.
On Friday, MCX gold February futures dipped 0.04 per cent while MCX silver March futures declined 3.24 per cent. Currently gold futures stand at Rs 1,58,400, while silver futures at Rs 2,59,279 per kg.
The price of 10 grams of 24-carat gold was at Rs 1,58,399 on Friday, down from Rs 1,59,568 seen on Monday, according to data published by the India Bullion and Jewellers Association (IBJA).
The prices of precious metals struggled to sustain elevated levels amid a strengthening US dollar and shifting interest rate expectations. Despite this pullback, safe-haven demand linked to geopolitical uncertainty continues to provide a supportive underlying cushion for precious metals, an analyst said.
Market participants said that as crude oil prices remain elevated, supported by persistent supply disruption concerns, chances of inflation remain bolstering demand for the yellow metal as an inflation hedge.
Amid intermittent profit-taking and intraday reversals across several commodities, market participation around key technical zones remained active, they noted.
Meanwhile, the US on Friday destroyed military targets on Iran's main oil hub of Kharg Island, which serves as the export terminal for 90 per cent of Iran's oil shipments, exacerbating concerns over energy supply disruptions.
Analysts noted that a strong US dollar, and rising US Treasury yields, have capped gains in precious metals during the last week in contrast to previous trends of gold and silver prices escalating during war.
Resistance for MCX Gold is now placed near Rs 1,63,000 to Rs 1,63,200 levels while Rs 1,58,000 to Rs 1,57,500 level continues to act as a solid demand zone, they noted.
Meanwhile, MCX Silver extended its corrective decline during the week after failing to sustain above the Rs 2,80,000-Rs 2,92,000 resistance zone, they said, adding that Rs 2,58,000-Rs 2,54,000 remains the key support region.
— IANS
Reader Comments
The US-Iran tensions are the real story here. Whenever there's trouble in the Middle East, oil prices shoot up and then inflation fears push people towards gold. It's a classic pattern. The dollar strength is just a temporary headwind.
Silver down over 3%! That's a much bigger move. Looks like the volatility in silver is high as always. Not for the faint-hearted. I'll stick to gold for my portfolio's stability.
Interesting analysis. The technical levels mentioned (resistance near 1,63,000, support at 1,58,000) are very useful for traders. This kind of profit booking is normal after a rally. The long-term trend for gold still looks up, especially with global uncertainty.
With the wedding season approaching, even a small dip will see heavy buying from households. Physical demand will put a floor under the prices. The support zone of 1,58,000-1,57,500 seems solid for now.
Respectfully, the article could have explained the impact of local factors like import duties more clearly. The MCX price is not just about international rates and the dollar. Our customs duty plays a big role in the final price for consumers.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.