New Delhi: bear Prices rose by Rs 988 to Rs 1.42 lakh per 10 grams in futures trade on Tuesday, following strong global trends as investors appreciated diplomatic efforts to ease the US-Iran conflict.
On the Multi Commodity Exchange, contracts of the yellow metal for August delivery traded higher by Rs 988, or nearly 1 percent, at Rs 1,42,376 per 10 grams in a business turnover of 551 lots.
“Gold prices witnessed an uptrend in domestic markets on Tuesday driven by the cooling of tensions surrounding the US-Iran conflict, which has eased some concerns about rising energy costs,” said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
In international markets, Comex gold futures for the August contract gained $66.30, or nearly 2 percent, to $4,082.20 an ounce.
Gold has rebounded in overseas markets from its key support levels near $3,960 an ounce amid reports that Iran had received a proposal for a 10-day ceasefire from brokers, said Renisha Chainani, Head of Research at Augmont.
She said the ongoing US-Iran standoff has kept investors cautious about energy-driven inflation and the possibility of further interest rate hikes by the Federal Reserve.
“Gold remains under near-term pressure from expectations of Fed tightening and a strong dollar. However, gold investor positioning appears relatively light after months of ETF exits, meaning further price declines may be limited,” Chainani said.
She added that strong physical demand, particularly from China, along with continued central bank purchases, continues to provide support for the precious metal.
According to Manav Modi, Commodity Analyst at Motilal Oswal Financial Services Ltd, market participants will closely monitor developments around the US-Iran situation, currency movements and the European Central Bank’s policy decision for further cues on bullion.
