Gold surges 0.19 pc this week amid persistent geopolitical tensions

Gold prices increased 0.19% for the week amid ongoing geopolitical uncertainty and notable swings in crude oil prices.

On Friday, MCX gold June futures fell 0.06%, while MCX silver May futures declined 0.09%.

At present, gold futures are trading at Rs 1,58,588, and silver futures at Rs 2,71,600 per kilogram on the MCX.

The price for 10 grams of 24‑carat gold was Rs 1,58,117 on Friday, up from Rs 1,57,821 at Monday’s opening, as reported by the India Bullion and Jewellers Association (IBJA).

Toward the weekend, gold prices edged lower, with COMEX gold holding around $4,535, while a stronger rupee exerted downward pressure on domestic bullion, according to an analyst.

News of progress in US‑Iran talks softened demand for precious metals, although lingering tensions around the Strait of Hormuz continued to give short‑term support.

Positive signals from ongoing US‑Iran proposal talks are keeping COMEX gold supported near the $4,500 level, yet uncertainty about the final outcome maintains elevated volatility, he noted.

India’s gold demand is projected to fall 10% year‑on‑year, or by 50‑60 tonnes in CY 26, after the import‑duty increase, according to a World Gold Council report.

The gold import duty was hiked sharply from 6% to 15%, the largest single increase on record, fully undoing the duty reduction implemented in July 2024.

Looking forward, gold’s trajectory will continue to hinge on US‑Iran developments, movements in the dollar index, and rupee volatility.

Higher bond yields pose near‑term headwinds for gold and silver. The 30‑year U.S. Treasury yield remains above 5%, while the 10‑year note yield finishes the week above 4.5%.

Rising bond yields could lead the U.S. Federal Reserve to raise interest rates by the end of CY 26, increasing the opportunity cost of holding non‑yielding assets such as gold and silver.

(With inputs from IANS)