Mumbai: Gold prices ended the week with firm gains as cooling crude oil prices supported sentiment, although hawkish signals from the US Federal Reserve limited the upside in precious metals.
The price of 24-carat gold rose to ₹1,53,727 per 10 grams on Friday from ₹1,51,938 a week earlier, according to India Bullion and Jewellers Association data. This marked a weekly increase of nearly 1.18%.
However, profit-booking emerged in the futures market on Friday. MCX gold futures for October delivery declined 0.84% to ₹1,54,263 per 10 grams. MCX silver futures expiring in December slipped 0.16% to ₹2,42,000 per kilogram.
Crude Oil Falls Below $100
Gold received support after crude oil prices declined for three consecutive sessions and fell below $100 per barrel.
Oil prices eased as concerns surrounding the closure of Saudi Arabia’s key pipeline weakened. Markets assessed that the disruption would have a smaller impact on global supplies than initially feared.
Earlier, an outage affecting Saudi Arabia’s East-West pipeline and an attack on a vessel in the Strait of Hormuz had raised fears of disruptions to Middle East energy flows.
Hawkish US Fed Caps Gold Rally
The recovery in gold prices lost momentum after the US Federal Reserve delivered a hawkish policy outlook.
The Fed raised interest rates by 25 basis points, taking the federal funds target range to 3.75%–4%. This was its first rate increase since 2023.
Several Fed officials indicated that further monetary tightening could follow. Markets placed the probability of another rate hike in October at around 55%.
US Treasury yields subsequently moved above 5%, putting pressure on non-yielding assets such as gold and silver.
Silver Gets Supply Deficit Support
Silver performed relatively better, supported by expectations of a sixth consecutive annual supply deficit in 2026, estimated at 46.3 million ounces.
Analysts placed Comex gold resistance at $4,470–$4,500 and support at $4,300–$4,340. MCX gold resistance stands at ₹1,54,000–₹1,54,700, while support is seen at ₹1,50,000–₹1,50,700.
