Gold prices rose by 0.19 percent this week amid geopolitical tension!

Gold prices rose by 0.19 percent this week amid continued geopolitical tensions and sharp fluctuations in crude oil prices. On Friday, MCX Gold June futures declined 0.06 per cent, while MCX Silver May futures declined 0.09 per cent.

Currently, on Multi Commodity Exchange (MCX), gold futures were trading at Rs 1,58,588 and silver futures at Rs 2,71,600 per kg.

According to data from India Bullion and Jewelers Association (IBJA), the price of 10 grams of gold of 999 purity on Friday was Rs 1,58,117, which was Rs 1,57,821 at the time of market opening on Monday.

According to analysts, gold prices witnessed slight weakness at the end of the week as Comex gold settled around $4,535 and strengthening rupee put pressure on bullion prices in the domestic market.

Buying of precious metals softened slightly due to media reports of progress in talks between the US and Iran. However, ongoing tensions over the Strait of Hormuz supported gold in the near term.

Analysts said that due to positive signals related to US-Iran talks, Comex Gold is getting support around the level of $ 4,500, but uncertainty regarding the final outcome is still maintaining volatility in the market.

According to the World Gold Council report, gold demand in India may decline by 10 percent or 50-60 tonnes on an annual basis in the 2026 calendar year. The main reason for this is believed to be the increase in import duty.

The government has increased the import duty on gold from 6 percent to 15 percent, which is considered to be the biggest increase so far. With this, the fee reduction made in July 2024 has been completely eliminated.

Going forward, the direction of gold prices will depend on US-Iran relations, movement of the dollar index and fluctuations in the rupee.

According to analysts, a rise in bond yields could put pressure on gold and silver in the near term. The US 30-year Treasury bond yield remained above 5 percent, while the 10-year bond yield remained above 4.5 percent at the end of the week.

The US Federal Reserve may raise interest rates by the end of 2026 due to rising bond yields. This may increase the cost of holding non-interest bearing investment instruments like gold and silver.