After U.S. President Donald Trump delayed the decision to get involved in the Israel-Iran war, gold prices on the Multi Commodity Exchange (MCX) remained steady on Friday, owing to a softening trend in international bullion prices.
On Friday, gold prices on MCX closed with a slight dip of ₹13 or 0.01%, settling at ₹99,096 per 10 grams. During the session, gold touched an intraday high of ₹99,198 and a low of ₹98,431. Over the course of the week, gold prices on MCX dropped by more than 1%.
Meanwhile, silver prices on MCX rose by ₹51 or 0.05%, ending at ₹1,06,275 per kilogram. Silver recorded an intraday high of ₹1,06,695 and a low of ₹1,05,053
In the global markets, spot gold slipped by 0.2% to $3,365.51 per ounce, with the index down 1.8% for the week. U.S. gold futures also fell 0.7% to $3,385.50. Spot silver dropped 1.1% to $35.98 per ounce, marking a 0.9% decline for the week.
Amid rising geopolitical tensions in the Middle East and expectations of interest rate cuts by the U.S. Federal Reserve, gold prices have seen a decline as investors try to strike a balance.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, said, "A strong U.S. dollar and high bond yields continue to put pressure on gold.
The White House said on Thursday that President Trump will decide within the next two weeks whether the U.S. will intervene in the ongoing Israel-Iran aerial conflict.
Gold, traditionally seen as a safe-haven asset, often gains value during times of geopolitical and economic uncertainty.
Meanwhile, U.S. Federal policymakers have projected a total interest rate cut of 50 basis points for 2025. However, they’ve slightly lowered the easing outlook, now expecting only a 25-basis-point cut in both 2026 and 2027.
A high-interest rate environment tends to put pressure on gold prices, as the metal does not offer any yield.
Next week, all eyes will be on the Israel-Iran conflict, especially for any signs of U.S. military involvement.
In addition, Fed Chair Jerome Powell’s testimony before Congress will be closely watched by investors, along with a series of macroeconomic data releases that could influence gold prices.