Gold prices saw a slight increase on Friday due to a weaker US dollar and escalating tensions in the Middle East, making bullion more attractive to investors. The April gold futures on the MCX were up by 0.14% at Rs 62,062 per 10 grams, while silver futures were trading lower at Rs 70,228 per kg.
Spot gold was up 0.1% at $2,025.7 per ounce, with U.S. gold futures also edging higher. Geopolitical tensions in the Middle East, including attacks on a UK-owned cargo ship and missile strikes on Israel by Yemen’s Houthis, have contributed to the rise in gold prices.
Despite positive U.S. economic data boosting the dollar index, tensions in the Middle East have provided some support to gold and silver prices. Analysts expect prices to remain volatile in the current session, with gold potentially moving lower towards $2,000 levels.
The dollar index was facing its first weekly decline in nearly two months, making gold more affordable for international buyers. However, strong U.S. consumer and producer prices have dampened hopes for an early interest rate cut from the Federal Reserve, limiting gold’s gains.
Market expectations suggest a 62% chance of a Fed rate cut in June, which could boost the appeal of holding non-yielding bullion. Technical analysis indicates support levels for gold and silver, with resistance levels also highlighted.
In terms of the INR, gold and silver have established support and resistance levels. Spot platinum and palladium prices saw some declines, while silver prices gained but were down for the week.
Overall, the outlook for gold remains mixed, with geopolitical tensions and economic data influencing prices. Investors should stay informed about market developments and monitor key support and resistance levels for trading decisions.
Additional insight: It is essential for investors to keep a close eye on geopolitical events, economic data releases, and currency movements to better understand the factors affecting gold prices. Diversification and risk management strategies should be considered to navigate the volatile nature of the precious metals market.
