NEW DELHI: Gold prices rebounded by Rs 1,500 to reclaim the Rs 1.60 lakh per 10-gram mark in the national capital on Tuesday due to a weak US dollar and improving sentiment in the bullion market.
According to local marketmen, the yellow metal of 99.9 per cent purity climbed Rs 1,500 to Rs 1,60,300 per 10 grams (inclusive of all taxes) from Monday’s closing level of Rs 1,58,800 per 10 grams.
The recovery came even as global gold prices traded lower, with analysts attributing the rise in domestic prices weak to US dollar and renewed investor interest.
“Gold prices rebounded on Tuesday, supported by a decline in crude oil prices and a pullback in the US dollar and Treasury bond yields,” Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, said.
Silver prices, however, remained flat at Rs 2,55,700 per kilogram.
Market sentiment improved after Iran and Israel agreed to halt attacks against each other, while comments from US President Donald Trump indicating progress toward a formal ceasefire boosted hopes for a diplomatic resolution to the conflict, he added.
“The easing of geopolitical tensions helped alleviate concerns over energy-driven inflation, providing support to precious metals after recent weakness.
“However, the recovery remained limited as investors continued to weigh the outlook for US monetary policy,” Gandhi said.
In the international markets, spot gold slipped marginally to USD 4,326.78 per ounce, however silver edged up at USD 68.28 per ounce.
Spot gold is trading lower around USD 4,330 per ounce level as traders look for more clues to the situation in the Middle East, Praveen Singh, Head of commodities at Mirae Asset ShareKhan, said.
Meanwhile, crude oil prices traded lower as the US President Donald Trump claimed that a good deal involving Washington and Tehran is imminent.
“Investors are closely watching US Consumer Price Index and Producer Price Index releases, due on Wednesday, for clear signals on the Federal Reserve’s monetary policy trajectory,” Renisha Chainani, Head of Research at Augmont, said.
The European Central Bank is also widely expected to deliver a rate increase this week, she added.
PTI