New Delhi, Mar 10: Gold prices climbed by Rs 1,853 to Rs 1.62 lakh per 10 grams in futures trade on Tuesday as a weak US dollar and improved global sentiment supported the safe-haven demand.
According to the Multi Commodity Exchange, the yellow metal for April delivery appreciated Rs 1,853, or 1.16 per cent, to Rs 1,62,152 per 10 grams in a business turnover of 7,355 lots.
Analysts said gold prices recouped losses from the previous session after the US dollar weakened following comments by President Donald Trump suggesting that the conflict with Iran could be nearing an end.
In the international markets, Comex gold futures for April contract gained USD 75.91, or 1.5 per cent, to USD 5,179.61 per ounce.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.34 per cent lower at 98.84, lending support to yellow metal prices in the overseas trade.
“Gold prices rose to around USD 5,180 per ounce, as the dollar weakened after President Trump signalled that the conflict in the Middle East could end soon,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
Trump on Monday sought to reassure markets amid ongoing military tensions with Iran, describing the operation as a “little excursion” and a “short-term” endeavour.
According to Trivedi, earlier concerns that a prolonged conflict in the region could trigger a spike in inflation prompted the traders to scale back expectations for the US Federal Reserve interest rate cuts this year.
Market participants now imply roughly 40 basis points (bps) of easing by year-end, down from over 55 bps in late February.
Investors are now awaiting key macroeconomic data, including the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) due later this week, for fresh cues on the Fed’s monetary policy outlook and near term trajectory for gold prices, he added. (Agencies)
Follow our WhatsApp channel
