New Delhi, Apr 29: The yellow metal Gold faced its first weekly loss in prices in six weeks as hopes for interest rate cuts by the Federal Reserve seem to be delayed and amid an ease in geopolitical tensions in West Asia.

The investors have pulled back from the precious metal and prices plunged more than 2 per cent during the previous week.

"Israel-Hamas peace negotiations in Cairo raise hopes for a de-escalation of hostilities in the Middle East, increasing investors' demand for risky assets and contributing to a shift away from the safe-haven precious metal" said Ajay Kedia, market expert and head, Kedia Advisory.

He further added "looking at the fundamentals, gold prices seem to be falling till $2290, and the MCX may touch 70500 levels".

According to the market analysts, despite significant gains in gold in recent months, a pullback was deemed necessary. The delay in interest rate cuts by federal reserve supported the dollar index and US treasury yields which led to a downward pressure on gold prices.

A report by Motilal oswal financial services highlights that the advance US GDP data also revealed a sharp slowdown to a 1.6 per cent annual pace in the last quarter amidst high interest rates. The U.S. personal consumption expenditures (PCE) price index remained steady, supporting expectations that the Fed may hold off on interest rate cuts until September.

China's gold consumption surged nearly 6 per cent in the first quarter compared to a year earlier. Physical gold dealers in India charged premiums last week for the first time in nearly two months as a pullback in domestic prices lured buyers, while premiums in top consumer China slipped.

The report also highlights that domestically gold is anticipated to trade within the range of Rs. 71,000-71,800 as market sentiments remain cautious amid evolving economic indicators.

Historically, gold, as an asset, is considered to be a haven as it typically manages to retain or appreciate its underlying value in times of turbulence.

Gold is trading at USD 2,346 per ounce at the time of filing the report and in the April month, it has surged around 7 per cent.

(ANI)

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