admin Domestic gold futures ended the week with a strong performance, rising nearly 2% despite a sharp selloff on Friday. The bullion market held steady as rising central bank demand and geopolitical uncertainty supported prices throughout the week.
Gold Price Today: Weekly Performance and Market Close
Gold futures on MCX settled at ₹123,400 on Friday.
The precious metal fell 2.64% during the last session due to hawkish comments from U.S. Federal Reserve officials. These comments dimmed market sentiment and pulled prices down temporarily.
However, gold still gained over ₹2,000 during the week. This rise has revived hopes of a possible move toward the all-time high of ₹132,000, a level gold has struggled to reach over the past month
Why Did Gold Prices Rise This Week?
Analysts say gold found support due to several factors:
- Weak economic data expected after the U.S. government shutdown
- A rebound after brief profit-booking
- A strong rise in Shanghai gold inventories
- Heavy central bank buying, especially from China and Poland
- Geopolitical uncertainty worldwide
Justin Khoo, Senior Market Analyst at VT Markets, said structural central bank demand and geopolitical anxiety boosted gold’s momentum.
Manav Modi, Analyst – Precious Metals at Motilal Oswal, added that economic uncertainty after the U.S. shutdown could create the next major trigger for bullion.
Central Bank Demand Continues to Support Gold
Central banks purchased more than 1,000 tons of gold in both 2022 and 2023.
This strong trend continued in 2024, crossing the 1,000-ton mark once again.
Early estimates for 2025 suggest central banks may buy 750–950 tons, ensuring steady demand even at higher prices. This trend provides a firm floor for global gold prices.
Volatility May Increase Ahead of Economic Data
Analysts expect high volatility as fresh economic data emerges.
Uncertainty around the Fed’s rate outlook could also move gold sharply in the coming weeks.
Despite this, the medium-term outlook remains solid because global investors see gold as a safe asset during times of instability.
Gold Investment Strategy: Should Investors Buy Now?
Experts advise investors to stay cautious during sharp rallies.
Justin Khoo said gold is supported by long-term “de-dollarisation” trends, but investors should avoid chasing highs. He recommends adding gold during 2–3% declines to reduce risk.
Manav Modi also suggested booking partial profits near recent highs. He expects better entry points if prices correct slightly.
On the domestic front, analysts see strong support at ₹1,18,000–₹1,20,000.
Possible medium-to-long-term targets lie in the ₹1,30,000–₹1,37,000 range.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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