Gold prices in the Delhi bullion market edged up slightly on Friday, breaking a four-day losing streak as bargain buyers stepped in at lower levels. The precious metal rose by Rs 200 to settle at Rs 1,52,600 per 10 grams. Despite Friday's mild recovery, the overall week proved to be turbulent for precious metals, marked by substantial losses in both gold and silver due to pressure from a stronger US dollar and elevated bond yields earlier in the week. Bullion markets remain closed on Saturdays and Sundays.
Domestic Spot Prices and Local Market Dynamics
In the national capital, gold of 99.9% purity had closed at Rs 1,52,400 per 10 grams on Thursday before making a modest comeback. Meanwhile, silver prices held steady, closing unchanged at Rs 2.37 lakh per kg. Local bullion traders noted that buying interest emerged after four consecutive sessions of losses, as buyers took advantage of reduced price levels. However, overall gains remained capped as market participants maintained a cautious stance.
Substantial Weekly Losses for Gold and Silver
Despite the end-of-week relief, the weekly figures reflected a sharp correction across the precious metals segment. Over the course of the week, gold tumbled by Rs 4,000 per 10 grams, translating to a 2.5% decline. Silver witnessed an even steeper fall, losing Rs 10,000 per kg, which represents a 4% drop within seven days. Market participants attributed this weekly slide primarily to the sharp rally in the US dollar index and rising benchmark bond yields early in the week.
Global Trends and Crude Oil Softening
The rebound in domestic rates mirrored positive developments in international markets. Overseas spot gold advanced by $27.73, or nearly 1%, to reach $4,301.40 per ounce. Similarly, spot silver gained 1.4% to trade at $64.72 per ounce, approaching the $65 threshold. A drop in international crude oil prices below the $90 per barrel mark and a pullback in the US dollar provided breathing room to bullion prices, helping offset some of the week's cumulative losses.
Analyst Commentary and Market Outlook
Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, noted that gold saw a slight recovery as key headwinds subsided with crude oil and the US dollar retreating from recent peaks. He added that while Friday brought resilience, the strong dollar surge early in the week ensured an overall negative weekly close.
Echoing similar views, Kaynat Chainwala from Kotak Securities stated that spot gold managed to climb back above $4,300 per ounce while silver neared $65 per ounce. She explained that a softening US dollar alongside stabilization in the bond market after a sudden jump in yield supported the recovery from two straight days of declines.
