Indian Gold Prices Surge Amid Safe Haven Demand
Gold prices surged in India during the week due to renewed buying interest and safe haven demand amid global macro-economic factors. The MCX gold February futures rose by 0.07 percent on Friday, while MCX silver March futures added 4.41 percent.
The removal of additional margins in futures markets in domestic exchanges led to higher speculative participation and increased intraday activity, pushing prices higher. According to data published by the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold was at Rs 1,54,080 on Friday down from Rs 1,54,483 seen on Monday.
Analysts said that structural supply deficits and industrial demand for silver continue to underpin its bullish bias. They also noted relentless gold accumulation by central banks. However, a stronger dollar and constant change in interest-rate expectations from the US Federal Reserve may act as headwinds to precious metals.