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Gold Surges 5.77% Weekly as Crude Pullback Eases Inflation Fears

Gold prices posted a significant weekly gain of 5.77%, recovering from earlier lows as a retreat in Brent crude oil prices alleviated some inflation concerns. The market saw a steady recovery, with MCX gold April futures reaching Rs 1,44,500, supported by sustained geopolitical tensions and ongoing central bank purchases of bullion. Analysts note that while a strong US dollar and elevated Treasury yields pressured prices, the underlying upside momentum remains intact. Traders remain cautious, expecting near-term volatility driven by Middle East developments, crude oil swings, and central bank policy signals.

Key Points: Gold Gains Over 5% Weekly Amid Crude Price Pullback

  • Weekly gain of 5.77%
  • Crude oil pullback from $120/barrel
  • Geopolitical tensions underpin prices
  • Central bank bullion buying continues
2 min read

Gold gains over 5 pc on weekly basis amid pull back in crude prices

Gold prices rose 5.77% this week, rebounding as Brent crude retreated from $120. Analysts cite geopolitical tensions and central bank buying.

"The recent decline has eased overbought conditions, with prices now attempting to rebuild momentum amid mixed global cues - Analyst"

New Delhi, March 28

Gold prices gained 5.77 per cent during the week, amid sustained geopolitical tensions and pull back in crude oil prices.

On Friday, MCX gold April futures added 0.15 per cent while MCX silver May futures declined 0.09 per cent. Currently, gold futures stand at Rs 1,44,500, while silver futures at Rs 2,27,750 per kg.

The price of 10 grams of 24-carat gold was at Rs 1,42,942 on Friday, up from Rs 1,35,141 seen on Monday market opening, according to data published by the India Bullion and Jewellers Association (IBJA).

Gold spot prices dipped marginally on the last day of the trading as a strong US dollar weighed on the market.

MCX gold in India showed a steady recovery from a weekly low of Rs. 1,29,595 per 10 gram, while COMEX gold ended above $4,500 per troy ounce.

Analysts said that the recent dip in gold came as the traders sold bullion to raise cash amid risk‑asset losses but the underlying upside momentum remains strong as the central bank continues bullion buying and geopolitical risk underpin prices.

Further, elevated US Treasury yields had also reduced the relative appeal of non‑yielding assets like gold during the week.

Analysts noted that a pullback in Brent crude from near $120 per barrel to about $93 per barrel earlier in the week eased inflation fears and helped gold rebound from oversold levels.

Traders remain cautious as near‑term swings are likely to be sharp, driven by news from the Middle East, volatile crude prices and central bank policy signals.

"The commodities market enters the week in a phase of measured stabilisation following last week's sharp correction," an analyst said.

"The recent decline has eased overbought conditions, with prices now attempting to rebuild momentum amid mixed global cues, including a firm US dollar and evolving geopolitical developments in the Middle East," he added.

The MCX Gold prices are trading near support levels after a sustained multi-week uptrend with Rs 1,36,000- Rs 1,40,000 zone acting as a strong base, a market participant said.

Resistance now placed near Rs 1,55,000 to Rs 1,60,000 levels, he added.

- IANS

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Reader Comments

R
Rohit P
Good analysis. The link between crude prices easing and gold rebounding makes sense. Lower oil means lower import bill and slightly less pressure on inflation, which is good for gold as a store of value. But with tensions in the Middle East, this stability might not last long.
A
Aditya G
Just bought a few grams for my sister's wedding next year. At these prices, it's more of an emotional purchase than an investment! 😅 Hoping it cools down a bit before we need to buy more. The resistance at ₹1.55L looks very far right now.
S
Sarah B
Interesting to see the global factors at play. The strong US dollar and Treasury yields are headwinds, but central bank buying and geopolitics are providing a floor. It's a classic tug-of-war. As a long-term investor, I'm holding my SGBs and not looking at these short-term swings.
K
Karthik V
While the weekly gain is impressive, the article rightly points out the caution needed. The market is on a knife's edge with Middle East news and Fed policy. Not a time for speculative bets. For the average Indian, physical gold for occasions is fine, but for pure investment, maybe wait for a clearer trend.
N
Nisha Z
The sheer volatility from ₹1.29L to nearly ₹1.44L is staggering in a week! It shows how sensitive commodities are to global cues. Makes me wonder if small investors are better off with digital gold or gold ETFs to avoid making/charge and safely ride these waves.

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