Gold Futures Climb Rs 1,539 To Rs 1.52 Lakh/10g On Weak Us Dollar

Gold price climbed ₹1,539 to ₹1.52 lakh per 10 gram in futures trade on Wednesday due to bullish sentiment in the domestic market amid rise in precious metal rates globally and a weaker US dollar.

On the Multi Commodity Exchange, the yellow metal for June delivery increased ₹1,539, or 1.02%, to ₹1,52,300 per 10 grams from Tuesday's closing level of ₹1,50,761 per 10 grams.

Commodity markets were closed in the morning session on account of Shri Mahavir Jayanti and resumed trading in the evening session on Tuesday.

Analysts said investors turned to safe-haven asset amid uncertainty surrounding the ongoing US-Iran conflict.

"Gold prices saw a notable uptick on Wednesday as investors sought refuge amid rising geopolitical tensions, particularly related to the ongoing US-Iran conflict," Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.

In the international market, gold futures for the May contract gained $55.35, or 1.18%, to $4,733.95 per ounce.

"Gold prices extended gains for a fourth consecutive session in Asian trade, supported by a weaker dollar and softer Treasury bond yields, as investors assessed signs of a potential de-escalation in the US-Iran conflict," Manav Modi Commodities Analyst Motilal Oswal Financial Services Ltd (MOFSL), said.

According to analysts, bullion prices witnessed a strong rebound after a volatile March, with prices rising sharply in previous session as the dollar retreated. However, the metal remained significantly lower for the month following pressure from expectations of higher-for-longer interest rates by the US Federal Reserve.

Market sentiment improved after US President Donald Trump indicated that Washington could exit the conflict within "two to three weeks," raising hopes of a near-term resolution.

Iranian President Masoud Pezeshkian also signalled readiness to end hostilities under certain conditions.

Despite these developments, uncertainty around the timing and structure of any agreement, along with concerns over potential disruption in the Strait of Hormuz, kept investors cautious.

Meanwhile, Federal Reserve Chair Jerome Powell reiterated a data-dependent approach, noting that policymakers are closely monitoring economic fallout from geopolitical developments.

Modi of MOFSL said investors' focus in the Easter-shortened week will remain on the US jobs market data, which could provide further direction on the trajectory of monetary policy and bullion prices.

On the outlook, Renisha Chainani, Head of Research at Augmont said gold has reached upper end of the range touching $4,700 per ounce (₹1.52 lakh per 10 grams).

"We are likely to see some retracement and consolidation before prices move towards next resistance of $4,900 per ounce, translating it into ₹1.58 lakh per 10 grams in the domestic markets," she added