New Delhi, April 9 Gold prices trimmed early losses to trade higher at Rs 1.51 lakh per 10 grams in futures trading on Thursday, supported by cautious buying amid a fragile ceasefire between the US and Iran.
On the Multi-Commodity Exchange, the yellow metal contract for June delivery opened lower, but later reversed losses to trade in the positive territory.
The most traded June contract for gold rose by Rs 211, or 0.14 per cent, to Rs 1,51,987 per 10 grams in a trading volume of 7,421 lots.
Analysts said gold recovered from recent lows following the ceasefire announcement, although uncertainty over its durability kept gains limited.
Gold prices recovered from recent lows following the US-Iran ceasefire.
However, the relief is fragile as markets remain cautious, as the ceasefire has too many unresolved variables to sustain a durable rally, Renisha Chainani, Head of Research at Augmont, said.
"The recovery in the precious metal may prove short-lived if tensions re-escalate," she added.
In the international market, Comex gold futures for the June contract slipped by USD 25.05, or 0.52 per cent, to USD 4,752.15 per ounce in New York.
"Gold stabilized near USD 4,700 per ounce, as investors assessed a fragile ceasefire in West Asia amid sporadic fighting and lingering uncertainty over the reopening of the Strait of Hormuz," Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
Iranian media reported that oil tanker transit through the strait had been halted after Israel conducted military strikes on Lebanon, while a senior Iranian official said three provisions of the ceasefire proposal had already been breached.
Oil prices rebounded slightly, and the dollar and bond yields edged higher, maintaining downward pressure on gold, Trivedi said.
On Wednesday, bullion prices climbed as much as 3.3 per cent following the ceasefire announcement between Washington and Tehran, before giving up nearly all those gains as investors took profits amid a broader risk-on rally in global equities, he added.