Gold, silver prices climb up to 3 pc as geopolitical tensions appear to ease
Mumbai, March 20
Gold and silver on Friday witnessed a substantial rise in prices, with both precious metals gaining 3 per cent amid hopes of easing tensions in West Asia.
On the Multi Commodity Exchange (MCX), gold futures (April 2) touched an intra-day high of Rs 1,48,302 per 10 grams at around 10:45 am, up 2.30 per cent or Rs 3,348. During the session so far, gold hit a low of Rs 1,47,401. At the last count, the yellow metal was trading at Rs 1,47,534, up Rs 2,580 or 1.78 per cent.
Similarly, silver futures (May 5) rose as much as 3.68 per cent, or Rs 8,540, to Rs 2,40,000 per kg. In intra-day trade, silver hit a low of Rs 2,37,300. It was last trading at Rs 2,36,903, up Rs 5,443 or 2.35 per cent.
In international markets, both gold and silver were trading higher. Comex gold rose 2.40 per cent to $4,716 per ounce, while silver gained 3.61 per cent to $73.78 per ounce.
According to Manav Modi, commodities analyst at Motilal Oswal Financial Services, gold prices stabilised in early trade but are still heading towards their worst weekly decline in six years. He said the recent fall in gold was driven by rising inflation expectations due to the ongoing US-Israel conflict with Iran, along with reduced expectations of interest rate cuts in the near term.
The analyst added that safe-haven demand for gold has been weighed down by a sharp rise in the US dollar and Treasury yields, while elevated oil prices have further heightened concerns over inflation and supply disruptions.
Gold and silver had witnessed a sharp decline on Thursday, with gold slipping to around Rs 1.44 lakh per 10 grams and silver to about Rs 2.20 lakh per kg.
According to experts, MCX gold is trading above key support levels near Rs 1,47,000, with immediate resistance seen in the Rs 1,50,000-1,52,000 range, while silver remains in a range-bound zone with support near Rs 2,33,000 and resistance around Rs 2,43,000-2,46,000.
— IANS
Reader Comments
As an investor, this 3% jump is a welcome relief but the article correctly points out the weekly trend is still negative. The US dollar and oil prices are the real drivers. We need to watch the Fed's moves closely.
Silver up by nearly Rs 8,500 per kg! That's huge. I've been investing in silver ETFs for the past year. The industrial demand plus its role as a cheaper precious metal makes it an interesting bet for the long term.
Interesting analysis. While the headline talks about easing tensions, the expert quote suggests inflation and US rates are bigger factors. Makes you wonder if this rise is just a temporary bounce. The support and resistance levels given are useful.
Gold at nearly 1.5 lakh for 10 grams is still very high for the common man. My father bought some for my wedding 10 years ago at half this price. It's become more of an investment vehicle than jewellery for many now.
The article is informative but could have explained the "worst weekly decline in six years" part better. What caused that initial sharp fall on Thursday? A little more context would help readers understand the full picture.
N Nikhil C With festival We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.