Gold Extends Rally for Third Week as Dollar Weakens

New Delhi — Gold prices continued their upward momentum for the third straight week, rising 1.65% amid a weaker US dollar and renewed safe-haven demand. Easing inflation concerns and early signs of US-Iran ceasefire negotiations further supported the rally.

On Friday, gold futures on the Multi Commodity Exchange of India (MCX) for June delivery edged up slightly, while silver futures for May also saw marginal gains. Gold futures were trading around ?1,52,690, with silver at ?2,43,300 per kg.

According to the India Bullion and Jewellers Association, the price of 24-carat gold (10 grams) climbed to ?1,50,327, up from ?1,47,891 at the start of the week—reflecting steady investor interest.

In global markets, COMEX gold prices rose nearly 3% over the week to $4,787.40 per troy ounce. Analysts indicate a key resistance level near $5,000, beyond which a stronger bullish trend could emerge.

The US dollar remained under pressure as geopolitical tensions eased following the US-Iran truce, prompting traders to reassess interest rate expectations. A decline in crude oil prices also raised hopes of softer inflation, increasing speculation about potential rate cuts by the Federal Reserve System in the coming months.

Market sentiment remained cautiously optimistic, with precious metals stabilizing after recent volatility. Currency movements—especially in the USD/INR pair—are expected to play a crucial role going forward. A stronger rupee has helped cushion domestic prices, but any reversal could impact the next phase of the trend.

Technically, MCX gold is holding above a key support range of ?1,46,000–?1,48,000, with immediate resistance seen near ?1,54,000–?1,55,000. For silver, support lies between ?2,25,000 and ?2,30,000, with deeper support around ?2,00,000.

With inputs from IANS