Gold prices increased in the domestic market despite the weak trend in global markets as the rupee continued to depreciate against the dollar.
The yellow metal prices were up by ₹420 on Friday to ₹1,51,479 per 10 g against ₹1,51,059 on Thursday.
In fact, the precious metal opened weak by ₹395 at ₹1,50,664 but gained ground on a weak rupee.
Spot gold price declined 0.2 per cent to $4,685 per ounce. It has dropped around 3 per cent so far this week. US gold futures for June delivery also eased 0.5 per cent to $4,700.
On MCX, gold for June delivery was up 0.29 per cent at ₹1,52,206 while the August contract was up 0.34 per cent at ₹1,54,799.
Crude oil pressure
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said gold prices remained highly volatile, trading in a wide range of $4,655–$4,710, as rising crude prices continued to pressure broader asset classes.
In the domestic market, gold prices were driven largely by West Asia developments, particularly tensions involving Iran, Israel, and US presence in the Strait of Hormuz, which keep uncertainty elevated. With conflicting signals and no clear resolution, gold is expected to stay news-driven and volatile, he said.
Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said precious metals are being weighed down by a firmer US dollar, rising Treasury yields and elevated crude oil prices.
The dollar index held firm near $98.8, embarking on its first weekly gain in three weeks, acting as a persistent drag on precious metals, he said.
The hawkish repricing was compounded by Fed chair nominee Kevin Warsh, who pledged to uphold the Fed’s independence and called for a new framework to address persistent inflation without committing to easing, he added.