Gold posts 1.31 pc weekly surge as US-Iran conflict escalates
Mumbai, July 25
Gold prices surged 1.31 per cent on a weekly basis as escalating conflict between the US and Iran, along with a surge in crude oil prices, prompted a flight to safe-haven assets.
On Friday, MCX gold August futures gained 0.17 per cent while MCX silver September futures advanced 1.33 per cent. Gold futures settled at Rs 1,43,066, while silver futures at Rs 2,22,301 per kg on the commodity exchange.
The price of 10 grams of 24-carat gold was at Rs 1,43,781 on Friday from Rs 1,41,915 seen on Monday market opening, according to data published by the India Bullion and Jewellers Association (IBJA).
Risk premiums of precious metals rose as renewed US‑Iran tensions and attacks on tankers in the Red Sea sent crude prices sharply higher.
However, gold and silver entered a range‑bound pattern later this week as energy shock rekindled inflation fears. These fears lifted US Treasury yields and strengthened the dollar, weighing on demand for non‑yielding precious metals.
US President Donald Trump doubled down on his threat of a "massive attack" against Iran later this week.
Brent crude rallied nearly 9.8 per cent during the week and briefly crossed the $100 a barrel mark, after Yemen's Houthi rebels claimed strikes on two Saudi tankers in the Red Sea fuelling gold's rally.
Investors also increased expectations that the Federal Reserve could maintain a more hawkish policy stance, as higher energy costs threaten to complicate the inflation outlook.
Silver showed multiple rebounds, supported by resilient industrial demand, particularly from the solar and electric-vehicle sectors, although gains moderated later in the week as markets repriced expectations for higher US interest rates.
US Treasury yields advanced on Thursday as Brent crude oil crossed $100 per barrel and weekly unemployment insurance claims tumbled below 2 lakh.
Immediate resistance is placed at $4,140-$4,160, for COMEX gold, while support lies at $4,000-$3,980, market participants said.
For MCX gold, immediate resistance is placed at Rs 1,45,500-Rs 1,46,6000, while the support lies at Rs 1,42,000-Rs 1,41,500, they added.
Investors remain keen on the US Federal Reserve's policy meeting on July 28-29 for cues on direction of commodity markets.
— IANS
Reader Comments
Interesting how global conflicts hit home for us in India. With crude touching $100, I'm worried about fuel prices at the pump. Gold's surge might be good for investors, but the common man feels the pinch through inflation. Hope the government keeps an eye on this.
This is classic geopolitics affecting our pockets. Gold at Rs 1.43 lakh per 10g is a new high for many. But I'm skeptical—will this rally last? The Fed meeting next week could change everything. I'd rather buy on dips than chase this rally.
As a small-time investor, I stick to gold ETFs. This 1.31% weekly gain is nice, but we've seen bigger moves. The silver rally at 1.33% is interesting—industrial demand from solar panels is a long-term story. Just wish the rupee didn't weaken so much.
Being an NRI, I see both sides. Gold shines in Indian households, but the dollar strength is hurting our remittances. The US-Iran tensions remind me how fragile global peace is. Let's hope diplomacy wins over threats—this affects everyone, not just markets.
Gold prices are through the roof! My wedding is next year, and I'm worried about jewelry costs. This volatility in geopolitics is scary—first Ukraine, now Iran. On a positive note, silver's growth in industrial uses (solar, EVs) is something India should tap into. Make in India, anyone?
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