Global Signals Weigh Heavily on Gold Prices as Investors Engage in Profit Booking

Gold prices declined sharply by 5.89 per cent this week, as investors engaged in sustained profit booking amid a strengthening US dollar and shifting global cues. According to data from the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold fell from Rs 1,56,436 on Monday to Rs 1,47,218 on Friday, reflecting a steep weekly correction. On the Multi Commodity Exchange (MCX), gold April futures edged up 0.23 per cent on Friday to trade at Rs 1,44,825. In contrast, silver May futures slipped 1.72 per cent to Rs 2,27,470 per kg, extending their recent decline. Analysts said precious metals are entering the coming week under pressure following a phase of correction triggered by mixed global signals. While geopolitical tensions in West Asia initially supported safe-haven demand, recent volatility has dampened investor sentiment. Escalating tensions in the region, including Israeli strikes on Iran’s South Pars gas field and retaliatory attacks by Iran on energy infrastructure across Gulf nations, have pushed up crude oil and natural gas prices. This has raised concerns over imported inflation globally, influencing market behaviour. At the same time, major central banks — including the US Federal Reserve, Bank of Japan, Bank of Canada, and Bank of England — have signalled a cautious to hawkish stance, indicating the possibility of higher or sustained interest rates. Such an outlook typically reduces the appeal of non-yielding assets like gold. Market observers noted that MCX gold is approaching key support levels after a multi-week rally. Resistance is seen in the Rs 1,50,000 to Rs 1,52,000 range, while Rs 1,35,000 to Rs 1,40,000 is expected to act as a strong demand zone. Silver, meanwhile, continues to hold a broadly positive outlook due to a balance between safe-haven interest and industrial demand. However, prices have corrected sharply and are currently testing the Rs 2,20,000 to Rs 2,15,000 zone. A recovery towards Rs 2,40,000 may be possible if buying momentum returns. -ANI