Gold snaps four-session losing streak; rises Rs 200 per 10 gm on weak US dollar, easing oil price

NEW DELHI: Gold snapped a four-session losing streak, with prices rising modestly by Rs 200 to Rs 1,52,600 per 10 grams in the national capital on Friday, as retreating crude oil rates and the US dollar offered investors some breathing space after a volatile week.

The yellow metal of 99.9 per cent purity had closed at Rs 1,52,400 per 10 grams in the preceding session.

Silver prices, however, remained unchanged at Rs 2.37 lakh per kilogram, inclusive of all taxes, according to local traders.

Gold prices recovered after four consecutive sessions of losses as investors resorted to bargain buying at lower levels, traders said.

However, the precious metal ended the week Rs 4,000, or 2.5 per cent, lower, while silver lost Rs 10,000, or 4 per cent.

"Gold prices saw a recovery on Friday as some key challenges for precious metals diminished, with crude oil rates and the US dollar retreating from recent highs," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.

Despite the recovery, gold is still on track for a weekly decline due to a significant rise in the dollar earlier in the week, Gandhi added.

The rebound was equally visible in overseas markets, where spot gold gained USD 27.73, or nearly 1 per cent, to USD 4,301.40 per ounce, while silver rose 1.4 per cent to USD 64.72 an ounce.

“Spot gold edged higher on Friday, moving back above USD 4,300 an ounce, while silver climbed to near USD 65, recovering from two sessions of declines. A softer US dollar and stabilisation in bond markets after a sharp rise in yields supported the rebound,” Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.

Despite Friday's recovery, bullion remained headed for a weekly decline as elevated energy prices, persistent inflation concerns and resilient US economic data continue to strengthen expectations of further Federal Reserve tightening, she said.

The dollar index had climbed to a two-month high near 101.40, while the 10-year Treasury yield climbed to 5.18 per cent, its highest level since 2007, following stronger US data and renewed expectations of a rate increase.

“Looking ahead, further softness in oil, the dollar, and yields could support bullion, while stronger data and hawkish Fed guidance remain headwinds,” she added.