New Delhi, Nov 15 (IANS) The price of 24-carat gold (10 grams) surged by Rs 4,694 over the week, supported by safe haven buying and decline in dollar, but fell from weekly high on Friday after the end of US government shutdown.

The price of 10 grams of 24-carat gold closed the week at Rs 1,24,794 down from Rs 1,20,100 last week, according to data published by the India Bullion and Jewellers Association (IBJA).

The domestic gold prices witnessed one of its sharpest intraday falls, by nearly Rs 5,000 per 10 gram on Friday to hit the day’s low of Rs 1,21,895, but gained later in the day.

The yellow metal prices mirrored the softer trend in international markets where they were down by $127 per troy ounce, as traders reacted to fading expectations of a near-term US Federal Reserve rate cut.

International bullion remained around $4,000 for the week, after US Federal Reserve Chair Jerome Powell’s hawkish remarks fading hopes of rate cuts.

Market expectations for another cut in December slipped from around 90 per cent to near 60 per cent, pressuring bullion, while the dollar index held close to 100 and USD-INR climbed toward 89.

Analysts said that precious metals were poised for their strongest weekly performance in a month, driven by uncertainty from missing US economic data, which has increased safe-haven demand.

The yellow metal however declined on Friday after the end of the US government shutdown, which in turn faded concerns about economic disruption.

Analysts said that gold has support at Rs 1,25,750-1,24,980 zones while resistance at Rs 1,27,750-1,28,400. Silver has support at Rs 1,60,950-1,59,400 while resistance at Rs 1,63,850-1,64,900.

They forecast the current softness in bullion to continue in the near term, until there is a renewed surge in safe haven buying or a clear shift in the Federal Reserve’s policy tone.

–IANS

aar/na