New Delhi, Mar 10: Gold futures prices climbed sharply on Tuesday, rising ₹1,853 to reach ₹1.62 lakh per 10 grams, supported by a weaker US dollar and renewed safe haven demand in global markets.
Data from the Multi Commodity Exchange (MCX) showed that gold contracts for April delivery gained ₹1,853, or 1.16 per cent, to trade at ₹1,62,152 per 10 grams, with a turnover of 7,355 lots.
Market analysts said the precious metal recovered from losses recorded in the previous session as the US dollar weakened following remarks by US President Donald Trump suggesting that tensions related to the Iran conflict might ease soon.
In global markets, Comex gold futures for the April contract rose by USD 75.91, or 1.5 per cent, to USD 5,179.61 per ounce.
The dollar index, which tracks the greenback against a basket of six major currencies, slipped 0.34 per cent to 98.84. The decline in the currency typically supports bullion prices, as gold becomes cheaper for holders of other currencies.
According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, gold prices approached the USD 5,180 per ounce level as the softer dollar and easing geopolitical concerns lifted investor sentiment.
Trump’s remarks describing the military situation in the Middle East as a short-term development helped calm financial markets, contributing to the currency’s weakness and supporting precious metals.
Earlier fears that a prolonged conflict in the region could drive inflation higher had also influenced expectations regarding interest rate cuts by the US Federal Reserve. Traders have since scaled back those projections.
Market participants are now factoring in about 40 basis points of interest rate easing by the end of the year, down from more than 55 basis points anticipated in late February.
Investors are also closely watching upcoming US economic indicators, including the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) data, which are expected to offer further signals on the Federal Reserve’s policy outlook and the short-term direction of gold prices.