Daijiworld Media Network - New Delhi
New Delhi, Aug 15: Gold prices surged 0.86 per cent on a weekly basis as a slew of weaker-than-expected US economic data reinforced expectations that the US Federal Reserve will keep interest rates unchanged.
On Friday, MCX gold futures for October delivery gained 0.73 per cent to Rs 1,54,590, while MCX silver futures for September delivery advanced 0.15 per cent to Rs 2,36,272 per kg.
According to data published by the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold stood at Rs 1,49,621 on Friday, compared with Rs 1,42,863 at Monday's market opening.
Market participants said gold and silver also benefited from volatility in crude oil prices amid continuing tensions in the Middle East, lower US Treasury yields and a weaker US dollar.
Gold climbed to its highest level in more than two months before witnessing modest profit-taking later in the week. The yellow metal nevertheless posted a monthly gain of more than 10 per cent.
Silver also advanced and modestly outperformed gold, resulting in a narrowing of the gold-silver ratio.
Commodity market experts said immediate resistance for COMEX gold was placed at $4,470-$4,500, while support was seen at $4,400-$4,370.
For MCX gold, immediate resistance was pegged at Rs 1,55,500-Rs 1,56,000, with support at Rs 1,53,300-Rs 1,52,700.
Crude oil also rebounded sharply from the previous week's sell-off as hopes for a near-term resolution to the US-Iran standoff over the Strait of Hormuz faded.
Although crude prices retreated from their mid-week highs, both WTI and Brent recorded solid weekly gains.
Investors are now closely watching the minutes of the Federal Reserve's July policy meeting, due on August 19, as well as developments surrounding the Strait of Hormuz.
Meanwhile, July consumer inflation remained broadly contained, with core CPI easing to 2.5 per cent, further reinforcing expectations that the Federal Reserve is likely to leave interest rates unchanged at its September meeting.