Early Times Report
NEW DELHI, Mar 20: Gold prices jumped by Rs 1,914 to Rs 1.46 lakh per 10 grams in futures trade on Friday, tracking firm global trends amid easing geopolitical tensions in West Asia.
On the Multi Commodity Exchange, the yellow metal for April delivery increased by Rs 1,914, or 1.32 per cent, to Rs 1,46,868 per 10 grams.
Analysts said the recovery in gold prices was supported by improving market sentiment following signs of easing tensions in West Asia.
The recovery in gold prices was supported by easing geopolitical concerns, as recent statements from the US and Israel indicated a reduced risk of further disruptions to critical Middle Eastern energy infrastructure, Renisha Chainani, Head of Research at Augmont, said.
She added that the sentiment improved after indications that the US may ease sanctions on Iranian oil, potentially boosting global supply and reducing immediate risk premium in commodity markets.
Globally, gold futures for the April contract on the Comex rose USD 62.2, or 1.35 per cent, to USD 4,667.9 per ounce in New York.
"Gold prices steadied in Friday's trade but, remained on track for their worst weekly decline in six years, as the ongoing US-Israel conflict with Iran lifted inflation expectations and reduced bets on near-term interest rate cuts," Manav Modi, Analyst - Commodities, Motilal Oswal Financial Services Ltd, said.
Chainani further said signals from Israel indicating restraint on further strikes targeting Iranian energy assets have helped stabilise risk perception, thereby reducing immediate safe-haven demand for precious metals.
Modi added that the US Federal Reserve's hawkish stance in keeping interest rates steady capped the upside in the yellow metal prices, even as global cues remained supportive.
On the outlook, Chainani said gold has tested support near USD 4,600 per ounce and is likely to consolidate in the USD 4,550-4,800 range, translating to Rs 1.43-1.50 lakh per 10 grams in the domestic market, before a clear directional trend emerges. |
