Gold prices fell by Rs 610 to Rs 1.49 lakh per 10 grams in futures trade amid rising crude oil prices and escalating geopolitical tensions in West Asia. Internationally, Comex gold also declined as investors adopted a cautious stance.
-1775559088926_d.png "Gold prices drop Rs 610 to Rs 1.49 lakh amid West Asia tensions")
Rising crude oil, geopolitical risks weigh on gold futures. Representational Image
Gold prices declined by Rs 610 to Rs 1.49 lakh per 10 grams in futures trade on Tuesday as surging crude oil rates and escalating tensions in West Asia dampened the demand for the safe-haven asset and kept investors cautious.
On the Multi Commodity Exchange, the yellow metal for June delivery depreciated by Rs 610, or 0.41 per cent, to Rs 1,49,371 per 10 grams in a business turnover of 7,270 lots. Gold traded slightly lower on Tuesday as crude oil climbed towards USD 115 per barrel amid heightened geopolitical tensions particularly in the West Asia, Gaurav Garg, Research Analyst at Lemonn Markets Desk.
The surge in energy prices have created a risk-off sentiment among investors, leading to cautious trading in gold, even as it remain range-bound with a slight upward bias anticipated, he added.
In the international market, Comex gold futures for the June contract fell USD 19.13, or 0.41 per cent, to USD 4,665.57 per ounce in New York. Gold is trading in a narrow range for two consecutive sessions of decline, as renewed geopolitical anxiety after US President Donald Trump threatened to strike Iranian civilian infrastructure, raising concerns over a prolonged conflict and its broader economic fallout, Renisha Chainani, Head of Research at Augmont, said.
Trump also issued a fresh ultimatum to Iran until April 8 to reopen the Strait of Hormuz, warning of strikes on power plants and other civilian infrastructure. Tehran rejected the demand and continued attacks on regional energy assets, although diplomatic channels remain active, with reports suggesting dicussions around a 45-day ceasefire framework.
Rising crude oil prices have also heightened concerns that inflation could resurface potentially pushing major global central banks, including the US Federal Reserve, to approach a more hawkish stance, Chainani said. Investors are now awaiting US GDP numbers and the Federal Open Market Committee (FOMC) meeting minutes later this week for further direction on bullion prices, she added.
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
