On Friday, gold and silver prices in India saw an increase, mirroring the rise in global bullion prices, alongside a weakening dollar. MCX gold rate for June futures contracts commenced at Rs 1,44,000 per 10 grams, reflecting an increase of Rs 1,486, or 1.04%, compared to the prior closing figure of Rs 1,42,514. MCX silver rate for May futures contracts commenced at Rs 2,24,247 per kilogram, reflecting an increase of Rs 4,373, or 1.98%, in comparison to the prior closing level of Rs 2,19,874.

Analysts anticipate that the MCX gold price may encounter resistance at the Rs 1.45 lakh level, whereas the MCX silver price is expected to meet its next hurdle at the Rs 2.30 lakh per kg level. Gold prices rose by over 1%, bolstered by a weakening dollar; nonetheless, they are set for a fourth straight weekly drop due to surging energy costs that have amplified inflation concerns and increased expectations of climbing global interest rates. Spot gold prices rose by 1.1%, hitting $4,428.30 per ounce. US gold futures for April delivery saw a rise of 1.1%, hitting $4,423.40 per ounce. Spot silver price rose by 1.1% to $68.80 per ounce.

Gold prices have fallen by about 1.3% this week and have decreased roughly 17% since the beginning of the US-Israeli conflict with Iran on February 28. This decline has been impacted by a stronger US dollar, which has risen by over 2% in the same period. The dollar saw a drop, leading to reduced prices for bullion priced in dollars for those with different currencies. The ongoing tensions between the US and Iran have led to a surge in oil prices, raising concerns about potential inflationary pressures. Although inflation typically boosts gold’s appeal as a safeguard, high interest rates tend to diminish the demand for this asset that does not generate income.

Market participants have entirely dismissed any expectations of Federal Reserve easing for 2026, differing from earlier predictions of two rate cuts before the start of the Iran conflict, as indicated by the CME Group’s FedWatch Tool. In the realm of commodities, the spot price of platinum experienced a decline of 0.2%, settling at $1,823.40, whereas palladium prices saw an increase of 1.3%, reaching $1,370.75.