New Delhi, March 14 (IANS) Gold prices dipped 0.73 per cent during the week, following bouts of profit booking after touching multi-week highs.

On Friday, MCX gold February futures dipped 0.04 per cent while MCX silver March futures declined 3.24 per cent. Currently gold futures stand at Rs 1,58,400, while silver futures at Rs 2,59,279 per kg.

The price of 10 grams of 24-carat gold was at Rs 1,58,399 on Friday, down from Rs 1,59,568 seen on Monday, according to data published by the India Bullion and Jewellers Association (IBJA).

The prices of precious metals struggled to sustain elevated levels amid a strengthening US dollar and shifting interest rate expectations. Despite this pullback, safe-haven demand linked to geopolitical uncertainty continues to provide a supportive underlying cushion for precious metals, an analyst said.

Market participants said that as crude oil prices remain elevated, supported by persistent supply disruption concerns, chances of inflation remain bolstering demand for the yellow metal as an inflation hedge.

Amid intermittent profit-taking and intraday reversals across several commodities, market participation around key technical zones remained active, they noted.

Meanwhile, the US on Friday destroyed military targets on Iran’s main oil hub of Kharg Island, which serves as the export terminal for 90 per cent of Iran’s oil shipments, exacerbating concerns over energy supply disruptions.

Analysts noted that a strong US dollar, and rising US Treasury yields, have capped gains in precious metals during the last week in contrast to previous trends of gold and silver prices escalating during war.

Resistance for MCX Gold is now placed near Rs 1,63,000 to Rs 1,63,200 levels while Rs 1,58,000 to Rs 1,57,500 level continues to act as a solid demand zone, they noted.

Meanwhile, MCX Silver extended its corrective decline during the week after failing to sustain above the Rs 2,80,000–Rs 2,92,000 resistance zone, they said, adding that Rs 2,58,000–Rs 2,54,000 remains the key support region.

–IANS

aar/na