New Delhi, Aug. 6: Gold prices climbed to a seven-week high on Thursday, supported by falling US Treasury yields that strengthened safe-haven demand, even as optimism surrounding a possible agreement between the United States and Iran raised expectations of easing geopolitical tensions in West Asia.
On the Multi Commodity Exchange (MCX), gold futures for October 5 delivery opened 0.36 per cent, or Rs 536, higher at Rs 1,49,029 per 10 grams. During intraday trade, the contract touched Rs 1,49,700 per 10 grams by 12:10 pm, marking a gain of 0.81 per cent, or Rs 1,207, from the previous close.
Silver futures for September 4 delivery also witnessed buying interest in early trade. The metal rose to an intraday high of Rs 2,28,397 per kg, up 0.35 per cent, or Rs 813, from the previous close of Rs 2,27,584. However, it later pared gains and was trading at Rs 2,26,580 per kg, down 0.44 per cent, or Rs 1,004.
In international markets, COMEX gold traded 0.36 per cent higher at $4,320 per ounce, while COMEX silver gained 0.12 per cent to trade at $62.36 per ounce.
The upward movement in gold prices came despite reports suggesting that the Strait of Hormuz could reopen and comments by US President Donald Trump indicating that Washington was seeking an agreement with Iran. According to market experts, expectations that easing tensions in the region could result in lower crude oil prices have reduced concerns over inflation and near-term monetary tightening in the United States, placing pressure on US Treasury yields and supporting gold prices.
Analysts said immediate resistance for MCX gold lies between Rs 1,50,000 and Rs 1,50,700. A sustained move above this range could push prices towards the next resistance zone of Rs 1,52,200 to Rs 1,52,800. Immediate support is seen between Rs 1,48,600 and Rs 1,48,000, followed by the Rs 1,46,600 to Rs 1,46,000 range.
For silver, analysts identified immediate resistance above Rs 2,29,000, with further upside potential towards Rs 2,31,500-2,32,500. Key support levels are placed at Rs 2,25,000-2,24,000 and subsequently at Rs 2,22,000-2,21,000. They noted that silver remains above its 20-day and 200-day exponential moving averages, while the Relative Strength Index stood at 54, indicating improving momentum.
Meanwhile, Brent crude fell 0.51 per cent to trade below $80 per barrel, while US West Texas Intermediate crude declined nearly 1 per cent to below $75 per barrel.
