Gold prices surged 0.23 per cent during the week, amid renewed buying interest due to global macro-economic factors, safe haven demand and lack of directional cues from the US Federal Reserve.
On Friday, MCX gold February futures surged 0.07 per cent while MCX silver March futures added 4.41 per cent. Currently gold futures stand at Rs 1,56,993, while silver futures at Rs 2,52,042 per kg.
The price of 10 grams of 24-carat gold was at Rs 1,54,080 on Friday down from Rs 1,54,483 seen on Monday, according to data published by the India Bullion and Jewellers Association (IBJA).
The removal of additional margins in futures markets in domestic exchanges spurred higher speculative participation in the market and increased intraday activity, pushing prices higher.
The MCX and the NSE have withdrawn the additional margin of 3 per cent levied in Gold Futures and 7 per cent levied in Silver Futures in all contracts of all variants with effect from Thursday.
Analysts said that the commodities entered the week in a phase of controlled consolidation following sharp directional moves across energy and metals. Structurally, metals continue to trade within rising channel frameworks, and market internals indicate absorption at higher levels in metals, they said, adding that the broader medium-term structure remains constructive.
Resistance is now firmly placed near Rs 1,55,000 levels and Rs 1,52,000– Rs 1,53,000 zone has transitioned into a short-term demand zone following repeated absorption, an analyst said.
Analysts said that structural supply deficits and industrial demand from green energy, EVs, AI and electronics for silver continue to underpin its bullish bias, also noting relentless gold accumulation by the central bank.
Analysts said the volatility in silver stems from a demand‑supply mismatch and profit‑booking after steep gains over the past year, even as gold remains elevated compared with recent weeks.
A stronger dollar and constant change in interest-rate expectations from the US Federal Reserve may act as headwind to precious metals, persistent geo-political tensions are likely to keep risk-averse flows elevated, causing a rally in gold and silver prices in the coming days, they forecasted.
A recent report noted that gold and silver have entered a 3-5 year bull run, supported by favourable macroeconomic conditions and structural demand trends.
