New Delhi: Gold prices climbed to a seven-week high on Thursday as investors turned towards the safe-haven asset amid lower US Treasury yields, even as hopes of a possible agreement between the United States and Iran raised expectations of easing geopolitical tensions in West Asia.
On the Multi Commodity Exchange (MCX), gold futures (October 5) opened 0.36 per cent higher at Rs 1,49,029 per 10 grams. The prices later touched an intraday high of Rs 1,49,700 per 10 grams, gaining Rs 1,207 or 0.81 per cent by 12:10 pm.
Silver prices remain volatile
Silver futures (September 4) also witnessed buying interest in early trade. The white metal touched an intraday high of Rs 2,28,397 per kg, up Rs 813 or 0.35 per cent from the previous close.
However, silver later traded lower at Rs 2,26,580 per kg, declining Rs 1,004 or 0.44 per cent.
In the international market, COMEX gold was trading 0.36 per cent higher at $4,320 per ounce, while COMEX silver stood at $62.36 per ounce, up 0.12 per cent.
Global developments influence gold prices
The rise in gold prices came despite reports suggesting that the Strait of Hormuz could reopen and comments from US President Donald Trump indicating that Washington was working towards an agreement with Iran.
Market experts said expectations of easing tensions in West Asia could reduce crude oil prices and inflation concerns, while also influencing US monetary policy expectations.
Gold outlook and key levels
Analysts said MCX gold has immediate resistance at Rs 1,50,000-Rs 1,50,700, while a breakout above this level could push prices towards Rs 1,52,200-Rs 1,52,800.
The immediate support level for gold is seen at Rs 1,48,600-Rs 1,48,000, followed by support near Rs 1,46,600-Rs 1,46,000.
Experts said the trend remains positive as gold prices are trading above key exponential moving averages, with momentum remaining strong above the Rs 1,49,000 level.
Silver faces key resistance
For silver, analysts said a sustained move above Rs 2,29,000 could push prices towards Rs 2,31,500-Rs 2,32,500.
The immediate support level is placed at Rs 2,25,000-Rs 2,24,000, with further support at Rs 2,22,000-Rs 2,21,000.
Meanwhile, international crude oil prices declined, with Brent crude falling 0.51 per cent to below $80 per barrel, while US West Texas Intermediate (WTI) crude dropped nearly 1 per cent to below $75 per barrel.