New Delhi, March 13 The price of gold declined by ₹992 to ₹1.59 lakh per 10 grams in futures trading on Friday, driven by a bearish sentiment in international markets and a stronger US dollar.
On the Multi Commodity Exchange, the yellow metal for April delivery depreciated by ₹992, or 0.62 per cent, to ₹1,59,279 per 10 grams in a trading volume of 7,891 lots.
Analysts said gold came under pressure as the US dollar strengthened, making the precious metal less attractive for holders of other currencies.
"Gold is currently consolidating as markets balance macroeconomic headwinds with geopolitical risk," said Renisha Chainani, Head of Research at Augmont.
The dollar index, which gauges the strength of the greenback against a basket of six currencies, was trading 0.5 per cent higher at 100.23, weighing on bullion prices in overseas markets.
Chainani said the stronger US dollar has limited the upside in precious metals, while persistent inflation concerns linked to the ongoing Iran conflict have reduced expectations of a near-term Federal Reserve rate cut.
According to analysts, traders are also closely tracking geopolitical developments in West Asia and macroeconomic signals that could influence the trajectory of the Federal Reserve's monetary policy outlook.
Globally, Comex gold futures for the April contract fell by USD 31.69, or nearly 1 per cent, to USD 5,094.11 per ounce.
On the outlook, Chainani added that gold is currently consolidating, with prices expected to move towards USD 5,250 per ounce in the near term, which translates to around ₹1.63 lakh per 10 grams in the domestic market.
She further stated that a rise towards USD 5,300 per ounce, or around ₹1.65 lakh per 10 grams, cannot be ruled out if geopolitical tensions persist and safe-haven demand strengthens.