Gold prices in India traded higher on Friday, following gains in international bullion prices, as investors bought the dip after falling to multi-month low. However, the yellow metal was still below Rs 1.37 lakh level on the Multi Commodity Exchange (MCX).
MCX gold price was trading higher by Rs 455, or 0.33%, at Rs 1,36,680 per 10 grams. The yellow metal rose as much as Rs 1,362, or 1%, to an intraday high of Rs 1,37,587 level.
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Silver price on MCX traded lower by Rs 750, or 0.42%, to Rs 1,77,974 per kg. The metal fell as much as Rs 1,596, or 0.9% to Rs 1,77,128 level.
The recovery in gold price was supported by bargain hunting and technical buying after the recent correction pushed prices into oversold territory.
A moderation in US Treasury yields and some easing in the dollar's strength also provided support to precious metals, making gold more attractive to investors. International gold prices recovered after falling nearly 3% in the previous session, with traders looking for opportunities to enter the market at lower levels.
“MCX gold is outperforming MCX silver today. A slightly weaker rupee lifts domestic prices of both metals, but gold's bounce from its fresh low is stronger. Internationally, Thursday's bond selloff pushed the 10-year yield above 5% and the dollar higher, knocking gold down about 2.8%,” said Ponmudi R, CEO of Enrich Money.
Gold Price Outlook
According to Ponmudi, the near term bias remains cautious, with a reclaim and sustain above Rs 1,38,300 needed to stabilize, while a decisive break below Rs 1,34,000 risks a slide toward Rs 1,32,000.
“The Rs 1,37,500-1,38,300 zone, previously support, now acts as immediate resistance, with Rs 1,40,000-1,41,000 as the next hurdle. Immediate support is Rs 1,34,000-1,35,000, followed by Rs 1,31,000-1,32,000. The RSI near 36 is below its average, and the MACD histogram is negative,” added Ponmudi.
Vikram Subburaj, CEO, Giottus.com noted that a stronger dollar makes bullion more expensive for overseas buyers, while rising Treasury yields also reduce the appeal of gold and silver, as both metals do not generate interest income.
“Higher oil prices amid renewed US-Iran tensions have added to inflation concerns, reinforcing expectations that monetary policy may remain restrictive,” said Subburaj.
According to him, the near-term outlook remains cautious and gold's ability to hold around the $3,900 international level and silver's performance near $50 will be important indicators.
He advised investors against panic selling or chasing volatile moves, recommending staggered buying and disciplined position sizing while global interest rate expectations remain unsettled.
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