New Delhi, March 17 Gold prices rebounded in futures trading on Tuesday, gaining Rs 922 to Rs 1.56 lakh per 10 grams, ending a three-day losing streak amid persistent geopolitical tensions in West Asia.
On the Multi Commodity Exchange, the yellow metal for April delivery increased by Rs 922, or 0.59 per cent, to Rs 1,56,658 per 10 grams in a business turnover of 7,761 lots.
Gold prices saw a modest increase on Tuesday, primarily driven by ongoing geopolitical tensions in West Asia and the implications of expectations for a US Federal Reserve rate cut, said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
He added that rising crude oil prices have heightened concerns about inflation and its broader impact on the global economy.
"As concerns over crude supply eased slightly, investor sentiment shifted, allowing for gains in precious metals, although the overall market remains cautious," Garg said.
In the international market, gold prices recovered after four days of decline. The yellow metal futures for the April contract gained USD 14.46, or 0.29 per cent, to USD 5,016.66 per ounce.
US President Donald Trump has warned of potential strikes on Iran's oil infrastructure, adding to market uncertainty.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said that major central banks, including the Fed, are widely expected to keep interest rates unchanged in the near term, with traders closely tracking policy signals for further cues.
Apart from the Fed, investors are also closely watching policy meetings of the European Central Bank, the Bank of England, and the Bank of Japan.
Renisha Chainani, Head of Research at Augmont, said that gold briefly broke the key USD 5,000 per ounce level but failed to sustain lower levels, indicating a near-term consolidation.
However, the short-term bias remains bearish with strong support seen around USD 4,850 per ounce in global markets, she added.