Gold price at the close of the morning session on the MCX traded with gains of as much as 0.27 per cent or Rs 203 at Rs 75,963 per 10 gm. 24K gold, however, in the physical market was down Rs 160 to Rs 77,350 per 10 gm.

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After breaching Rs 78,000 per 10 gm level last week on the gaining geo-political tensions has been on a roller coaster ride this week. Post a sharp fall to the tune of 3 per cent, gold has been recovering and has risen nearly Rs 750 per 10 gm in 2 days. The sharp losses came amid news around ceasefire talks between Lebanon and Israel.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, Gold prices exhibited significant volatility, starting on a weaker note but quickly finding support amid renewed geopolitical tensions between Russia and Ukraine, which continue to bolster safe-haven buying. 

Immediate support is at $2,625, while resistance lies at $2,655–2,665. A decisive fall below $2,620 could drive prices toward $2,580, while a breakout above $2,665 could trigger a sharp rally toward $2,690.

The US macro data yesterday revealed a halted rate of inflation and a relatively robust US economy. This raises the possibility that the Fed may be wary of further rate reduction and causes a slight increase in the rates on US Treasury bonds, which boosts demand for the US dollar and is seen to be hurting Gold and Silver.

Nevertheless, despite the pick-up  in the dollar index, gold prices showed resilience and increased by a tad in Friday's trade.

Dollar index movements and geopolitical updates will likely keep gold's momentum uncertain in the short term, he added.