Gold prices climbed on Friday, buoyed by global economic uncertainty and a weakening US dollar, despite modest demand from India’s local spot market. As of 9:10 AM IST, MCX Gold June futures were up 0.10% at ₹95,612 per 10 grams.
Internationally, gold is set to close the week higher, driven by a softer dollar and rising concerns over the United States’ deteriorating fiscal health. The US dollar index has declined over 1% this week, marking its largest weekly drop since early April. Because gold is priced in US dollars, a weaker dollar typically boosts demand by making gold cheaper in other currencies.
Investor attention remains focused on the US economy following Moody’s recent credit rating downgrade and the passage of President Donald Trump’s expansive tax and spending bill, which has raised fears about widening the federal deficit.
Aksha Kamboj, Vice President of the India Bullion and Jewellers Association, noted that gold prices have held firm despite pressure on riskier assets like stocks, which have been affected by concerns over the growing US budget deficit and rising Treasury yields. She also cited escalating geopolitical tensions in the Middle East as potential drivers for further gold price increases.
Market analysts suggest a cautious but optimistic approach. Manoj Kumar Jain of Prithvifinmart Commodity Research recommends a “buy on dips” strategy amid ongoing volatility in the dollar and global bond markets. He forecasts gold trading between ₹94,600 and ₹96,650, with support at $3,240–$3,268 and resistance near $3,334–$3,358 per troy ounce. Silver prices are expected to range between ₹96,300 and ₹99,300, supported at $32.40–$32.84 and resisted at $33.55–$33.80 per troy ounce.
