Gold prices maintain bullish structure this week amid safe-haven demand
Indian bullion prices ended marginally lower but maintained the bullish structure this week, buoyed by uncertainty over the US Federal Reserve’s policy path.
The price of 24-carat gold (10 grams) started the week at Rs 1,13,498 on Monday, rose to a significant high of Rs 1,14,044 on Tuesday, and ended the week at Rs 1,13,260, according to data published by the India Bullion and Jewellers Association (IBJA).
The yellow metal sustained its appeal as a safe-haven asset, supported by global trade tensions, a depreciating rupee, steady central bank purchases, and uncertainty over the Fed’s policy path.
Silver also attracted huge buyer interest, benefiting from firm industrial demand alongside supply-side constraints. The price of silver was at Rs 1,37,467 per kilogram at market close on Friday, according to IBJA data.
"Gold prices traded firm at Rs 1,14,000 with marginal gains of Rs 130 as Comex Gold held steady, while the dollar stayed slightly positive and rupee remained flat near 88.71," said Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities.
"US GDP data came in higher, leading to minor profit booking yesterday, but gold quickly recovered, maintaining its bullish structure. Overall trend remains positive with support at Rs 1,12,500 and resistance at Rs 1,15,000," he added.
Gold is expected to trade in the range between Rs 1,07,500 and Rs 1,11,000, he added.
The bullion has outperformed Indian equities for the fourth consecutive Diwali-to-Diwali cycle, continuing a trend where the yellow metal has outperformed equities in seven of the last eight years.
Silver also outperformed Indian equities for the third consecutive year, driven by industrial demand from solar panel manufacturing, semiconductors, and electric vehicles.
Meanwhile, analysts say that bullion continues to receive support from robust central bank purchases and sustained inflows into ETFs. The Fed Chair’s cautious remarks on inflation, labour market and future rate cuts could act as a cap on bullion’s gains.
