However, the rising US treasury yields and firm dollar kept a check on the gains of the yellow metal. Markets are keenly awaiting US inflation data, which would help investors get more clues about Federal Reserve’s policy stance.
Gold futures on MCX gained 0.56 per cent, or Rs 291, at Rs 52,470 per 10 gram. Silver futures were trading higher by 1.06 per cent, or Rs 713, at Rs 68,007 per kg.
Gold prices are expected to outperform even after the current war tension settles as due to the after-effects of war, higher commodities prices and soaring inflation, the world would see some sort of recession zone where gold would be the preferred asset above all, said Ravi Singh, Vice President and Head of Research, ShareIndia.
Discounts on physical gold in India widened as scrap supplies increased amid only a slight improvement in demand, while purchases in top consumer China were steady despite Covid-19 lockdowns as buyers sought safe-haven assets.
In the spot market, highest purity gold was sold at Rs 52,510 per 10 gram while silver was priced at Rs 67,672 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have hit Rs 52,000 per 10 gram for the first time in almost four weeks, whereas silver has advanced about Rs 1,050 in the last one week.
Pritam Patnaik, Head – Commodities, Axis Securities, said gold prices did see some corrections from its high, but the same recovered owing to a stubborn inflationary trend and escalating war in Ukraine, which has now moved towards the eastern regions.
“The market will closely track the CPI inflation data,” he added. “The Fed will adopt an aggressive hawkish stance to reign in inflation. This will keep a cap on gold prices in the short term.”
Singh from ShareIndia has advised to buy gold above Rs 52,000 for a target of Rs 52,300, whereas traders can short the yellow metal below Rs 51,800 for a target of 51,600.
Spot gold was down 0.2 per cent at $1,950.52 per ounce by 0100 GMT, after hitting a near one-month peak of $1,968.91 on Monday. US gold futures were up 0.3 per cent at $1,954.
Spot silver shed 0.4 per cent at $24.97 per ounce and platinum was up 0.1 per cent to $978.00. Palladium was up 0.7 per cent at $2,448.14 after hitting a peak of $2,550.58 in the last session.