New Delhi, April 1 The price of gold rose by Rs 1,539 to Rs 1.52 lakh per 10 grams in futures trading on Wednesday, due to positive sentiment in the domestic market amid rising prices of precious metals globally and a weaker US dollar.
On the Multi Commodity Exchange, the yellow metal for June delivery increased by Rs 1,539, or 1.02 percent, to Rs 1,52,300 per 10 grams from Tuesday's closing level of Rs 1,50,761 per 10 grams.
Commodity markets were closed in the morning session due to Shri Mahavir Jayanti and resumed trading in the evening session on Tuesday.
Analysts said investors turned to safe-haven assets amid uncertainty surrounding the ongoing US-Iran conflict.
"Gold prices saw a significant increase on Wednesday as investors sought refuge amid rising geopolitical tensions, particularly related to the ongoing US-Iran conflict," said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
In the international market, gold futures for the May contract gained USD 55.35, or 1.18 percent, to USD 4,733.95 per ounce.
"Gold prices extended their gains for a fourth consecutive day in Asian trade, supported by a weaker dollar and lower Treasury bond yields, as investors assessed signs of a potential de-escalation in the US-Iran conflict," said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd (MOFSL).
According to analysts, bullion prices witnessed a strong rebound after a volatile March, with prices rising sharply in the previous session as the dollar retreated. However, the metal remained significantly lower for the month due to expectations of higher-for-longer interest rates by the US Federal Reserve.
Market sentiment improved after US President Donald Trump indicated that Washington could exit the conflict within "two to three weeks," raising hopes of a near-term resolution.
Iranian President Masoud Pezeshkian also signaled readiness to end hostilities under certain conditions.
Despite these developments, uncertainty around the timing and structure of any agreement, along with concerns over potential disruption in the Strait of Hormuz, kept investors cautious.
Meanwhile, Federal Reserve Chair Jerome Powell reiterated a data-dependent approach, noting that policymakers are closely monitoring the economic fallout from geopolitical developments.
Modi of MOFSL said that investors' focus in the week shortened due to Easter will remain on the US jobs market data, which could provide further direction on the trajectory of monetary policy and bullion prices.
On the outlook, Renisha Chainani, Head of Research at Augmont said that gold has reached the upper end of the range, touching USD 4,700 per ounce (Rs 1.52 lakh per 10 grams).
"We are likely to see some retracement and consolidation before prices move towards the next resistance of USD 4,900 per ounce, which translates to Rs 1.58 lakh per 10 grams in the domestic markets," she added.