Gold Futures Rise to ₹1.42 Lakh/10g After Early Losses

Gold futures recovered from early losses to trade higher at ₹1.42 lakh per 10 grams on Tuesday as traders reassessed the US Federal Reserve's interest rate outlook amid lingering geopolitical tensions and volatile crude oil prices.

On the Multi Commodity Exchange (MCX), the yellow metal for August delivery rose ₹196, or 0.14%, to ₹1,42,598 per 10 grams after opening in the negative territory.

The contract had settled at ₹1,42,402 per 10 grams on Monday.

"Gold prices experienced a notable decline in the early session but later pared all of its losses to trade higher as investors reassess the outlook for interest rates by the US Federal Reserve amid ongoing volatility in inflation and oil prices," said Gaurav Garg, Research Analyst at Lemonn Markets Desk.

In the international markets, Comex gold futures for the August contract rose marginally to quote at $4,044.80 per ounce in New York.

Gold futures briefly slipped below the $4,000 per ounce mark, their lowest level in nearly eight months, before recovering to around $4,040 per ounce in the overseas trade, Renisha Chainani, Head of Research at Augmont, said.

She said the rebound came even as the conflict between the US and Iran have intensified in recent days before both sides agreed to pause hostilities ahead of another round of peace negotiations in Doha, Qatar.

However, uncertainty remains after Iran reiterated its intention to retain control over shipping through the Strait of Hormuz, a key global oil transit route, Chainani added.

Investors are anticipating the possibility of three interest rate hikes this year by the US Fed, with focus shifting to upcoming jobs report for further cues on the central bank's policy path and near-term direction for precious metals, she added.