Gold prices rose 1.83% during the week ended 9 May, driven by persistent geopolitical uncertainty in the Strait of Hormuz and volatile crude oil prices. On the domestic front, MCX Gold June futures stood at ₹1,52,589, while MCX Silver May futures were at ₹2,61,999 per kg by Friday's close.

Domestic Prices at a Glance

MCX Gold June futures gained 0.04% on Friday, while MCX Silver May futures surged 1.34% on the same day. According to data published by the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold rose to ₹1,51,078 on Friday, up from ₹1,48,357 at Monday's market opening — a weekly gain of over ₹2,700 per 10 grams.

What Drove the Rally

Precious metals climbed for four consecutive sessions, supported by optimism over a potential US-Iran peace agreement and a softer US dollar. These tailwinds outweighed a stronger-than-expected US jobs report, which showed employment rising more than forecast in April while the unemployment rate held steady at 4.3%.

The resilient US labour market data reinforced expectations that the Federal Reserve may keep interest rates higher for longer — a scenario that could, in theory, pressure non-yielding assets like gold. Yet, the metal held firm, reflecting the depth of safe-haven demand amid ongoing West Asian tensions.

International Markets and Hormuz Flashpoint

On the Comex, gold climbed approximately $50 to a session high of $4,760 per troy ounce, posting a weekly gain of nearly 1.5%. Market participants noted that the prospect of easing regional tensions and a weaker dollar supported demand for non-yielding bullion. Notably, gold and silver have fallen nearly 10% since the US-Iran conflict began on 28 February, reflecting the whipsaw nature of geopolitically driven price action.

West Asian tensions were rekindled on Thursday after US and Iranian forces exchanged attacks near the strait, though US officials stated the ceasefire remained in place. The Strait of Hormuz — a critical chokepoint for global energy flows — has dominated the macro narrative, contributing to commodity market disruption and safe-haven inflows.

Technical Levels to Watch

Analysts noted that markets are entering a phase of technical consolidation following sharp swings in recent weeks, with precious metals witnessing mixed price action as gold and silver attempt to stabilise after recent corrective pressure.

For MCX Gold, immediate resistance is placed at ₹1,54,000–₹1,55,500, with immediate support near ₹1,50,000–₹1,48,000, according to analysts. For MCX Silver, the ₹2,65,000 zone acts as immediate resistance, while the ₹2,60,000–₹2,58,000 zone serves as immediate support.

The broader safe-haven structure remains intact, though the pace of the rally has moderated as the dollar steadies and broader risk sentiment shows tentative signs of improvement. Whether the ceasefire holds and how the Fed signals its next move will be the key determinants of gold's trajectory in the sessions ahead.