Gold Prices Fall 5.89% This Week Due to Profit Booking and Dollar Strength
Synopsis
Gold prices have witnessed a significant drop of 5.89% this week, primarily due to profit booking and a stronger dollar. As geopolitical tensions rise in the Middle East, analysts predict further pressure on precious metals.
Key Takeaways
Gold prices decreased by 5.89% this week.
The strong dollar and profit booking drove the decline.
Current gold futures are at Rs 1,44,825 .
Geopolitical issues in the Middle East are affecting market sentiment.
Interest rate hikes could further pressure precious metals.
New Delhi, March 21 (NationPress) This week, gold prices have plummeted by 5.89 percent due to ongoing profit booking and a stronger dollar. On Friday, the MCX gold April futures rose by 0.23 percent, while MCX silver May futures fell by 1.72 percent. Presently, gold futures are priced at Rs 1,44,825, with silver futures at Rs 2,27,470 per kg.
As per data from the India Bullion and Jewellers Association (IBJA), the price for 10 grams of 24-carat gold was Rs 1,47,218 on Friday, down from Rs 1,56,436 observed on Monday.
Analysts indicate that precious metals are likely to face pressure in the coming week due to a sharp corrective phase influenced by mixed signals from the ongoing geopolitical situations in the Middle East. Earlier, safe-haven demand had supported the price rally, but recent market volatility has affected investor sentiment.
Recent military actions, including Israel’s strikes on Iran’s South Pars gas field and Iran’s retaliatory attacks on energy infrastructure in Gulf nations, have caused an increase in crude oil and natural gas prices, which heightens the risk of imported inflation globally.
Furthermore, the US Federal Reserve, along with the Bank of Japan, Bank of Canada, and Bank of England, has adopted a cautious-to-hawkish stance, indicating that interest rates may either rise or remain unchanged. This potential for interest rate hikes tends to exert downward pressure on precious metals, as noted by market observers.
Currently, MCX Gold prices are nearing lower support levels following a sustained multi-week uptrend, with resistance now established between Rs 1,50,000 and Rs 1,52,000, while the Rs 1,35,000 to Rs 1,40,000 range continues to serve as a solid demand zone.
The overall bullish outlook for silver remains intact, buoyed by a balance between safe-haven demand and industrial usage. However, MCX Silver has extended its sharp decline this week and is testing the Rs 2,20,000 to Rs 2,15,000 demand zone. A recovery towards Rs 2,40,000 is feasible if buying momentum strengthens, analysts suggest.
aar/na
Point of View
It is evident that market dynamics are heavily influenced by both geopolitical events and monetary policy decisions. Investors should remain vigilant and consider these factors when making financial decisions in such a volatile environment.
NationPress
10 May 2026
Frequently Asked Questions
Why have gold prices fallen this week?
Gold prices have fallen by 5.89% due to profit booking and a stronger dollar, coupled with geopolitical tensions.
What are the current prices for gold and silver futures?
Currently, gold futures are at Rs 1,44,825 and silver futures are at Rs 2,27,470 per kg.
What factors are influencing the gold market?
The gold market is influenced by profit booking, dollar strength, and geopolitical developments in the Middle East.
What is the outlook for gold prices?
Analysts suggest that gold prices may face pressure in the coming week due to ongoing geopolitical tensions and potential interest rate hikes.
How do interest rates impact gold prices?
Higher interest rates tend to decrease the attractiveness of gold as an investment, leading to lower prices.
