New Delhi — Gold prices climbed to a seven-week high Thursday as falling U.S. Treasury yields strengthened demand for safe-haven assets, outweighing optimism that a potential agreement between the United States and Iran could ease tensions in West Asia.
On the Multi Commodity Exchange, gold futures for October delivery opened Rs 536, or 0.36%, higher at Rs 1,49,029 per 10 grams. The contract later reached an intraday high of Rs 1,49,700, up Rs 1,207, or 0.81%, by 12:10 p.m.
Silver futures for September delivery also attracted buying interest early in the session, reaching an intraday high of Rs 2,28,397 per kilogram, up Rs 813, or 0.35%, from the previous close of Rs 2,27,584.
Silver later reversed course and traded at Rs 2,26,580 per kilogram, down Rs 1,004, or 0.44%.
In international markets, COMEX gold rose 0.36% to $4,320 an ounce, while silver gained 0.12% to $62.36 an ounce.
The gains came despite reports that the Strait of Hormuz could reopen and comments from U.S. President Donald Trump indicating that Washington was seeking an agreement with Iran.
Analysts said expectations of easing regional tensions and lower crude oil prices reduced concerns about inflation and near-term monetary tightening in the United States. That pushed Treasury yields lower and increased the appeal of non-yielding assets such as gold.
For MCX gold, analysts identified immediate resistance between Rs 1,50,000 and Rs 1,50,700. A breakout above that range could open the way toward Rs 1,52,200 to Rs 1,52,800.
Immediate support was placed between Rs 1,48,600 and Rs 1,48,000, followed by a lower support zone of Rs 1,46,600 to Rs 1,46,000.
Analysts said gold had moved decisively above its major short- and long-term exponential moving averages, signaling stronger near-term momentum after several weeks of consolidation. The outlook remained positive above Rs 1,49,000, though a drop below that level could indicate that the recent rally was losing strength.
For silver, analysts said a sustained move above Rs 2,29,000 could push prices toward the next resistance range of Rs 2,31,500 to Rs 2,32,500.
Immediate support was seen between Rs 2,25,000 and Rs 2,24,000, followed by Rs 2,22,000 to Rs 2,21,000.
Brent crude fell 0.51% to trade below $80 a barrel, while U.S. West Texas Intermediate crude dropped nearly 1% to below $75. (Source: IANS)
