Domestic gold and silver prices recorded a marginal rise on MCX on Friday despite weakness in international markets.
Investor interest remained focused on price movements amid volatility in global markets and ber economic data from the United States, which directly impacted bullion prices. A day earlier, on February 12, gold and silver had remained under pressure.
International Market Trends
In international markets, both gold and silver declined. Spot gold fell 0.4 percent to 5,058.64 dollars per ounce, while U.S. gold futures for April delivery slipped 0.3 percent to close at 5,080 dollars per ounce. Spot silver declined 1.4 percent to 82.87 dollars per ounce.
Silver had earlier gained around 4 percent, but profit-booking emerged after ber U.S. data, increasing pressure on precious metals.
Impact of U.S. Jobs Data
U.S. non-farm payrolls data for January exceeded expectations. The U.S. economy added 130,000 jobs in January compared with market expectations of around 70,000 jobs. The unemployment rate declined to 4.3 percent.
Stronger employment data supported the U.S. dollar and led to an increase in U.S. Treasury yields. A ber dollar makes commodities such as gold and silver more expensive for investors holding other currencies, resulting in pressure on international bullion prices.
MCX Gold and Silver Rates
Despite global weakness, domestic prices edged higher on MCX. Gold was trading at 154,519 rupees per 10 grams, up 1,700 rupees per 10 grams. Silver gained 4,600 rupees per kilogram to trade around 241,393 rupees per kilogram.
City-Wise Gold Prices
In Mumbai, Chennai and Kolkata, 22-carat gold was priced at 145,190 rupees per 10 grams, while 24-carat gold was at 158,390 rupees per 10 grams.
In Pune and Bengaluru, 24-carat gold was available at 158,390 rupees per 10 grams and 22-carat gold at 145,190 rupees per 10 grams.
In Delhi, 24-carat gold was priced at 158,540 rupees per 10 grams, while 22-carat gold was at 145,340 rupees per 10 grams.
Silver Prices in Domestic Trade
In domestic trade, silver was quoted at around 295,100 rupees per kilogram in morning deals. Internationally, silver remained under pressure, while domestic demand and trading activity provided support to prices.
Factors Behind Recent Pressure
Recent pressure on gold and silver has been attributed to the strength of the U.S. economy. The dollar index has strengthened for two consecutive days, and rising Treasury yields have impacted precious metals.
A ber dollar increases the cost of gold and silver for overseas investors. Higher interest rates also tend to shift investor preference toward interest-bearing assets.
Outlook on Gold at 6,000 Dollars
Market participants said gold would require a major global crisis to reach 6,000 dollars per ounce. Such a move would likely involve a sharp decline in the dollar, aggressive rate cuts, significant central bank purchases, inflation concerns, or a major geopolitical shock.
According to Ross Maxwell, Global Strategy Lead at VT Markets, gold has already recorded substantial gains over the past 18 to 24 months. Without a major global disruption, the 6,000-dollar level appears distant at present. Over the longer term, de-dollarisation, inflation and reserve diversification could provide support to gold.
