New Delhi, April 7 Gold prices fell by Rs 610 to Rs 1.49 lakh per 10 grams in futures trading on Tuesday as rising crude oil rates and escalating tensions in the Middle East dampened demand for the safe-haven asset and kept investors cautious.
On the Multi Commodity Exchange, the yellow metal for June delivery depreciated by Rs 610, or 0.41 per cent, to Rs 1,49,371 per 10 grams in a trading volume of 7,270 lots.
Gold traded slightly lower on Tuesday as crude oil rose towards USD 115 per barrel amid heightened geopolitical tensions, particularly in the Middle East, said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
The surge in energy prices has created a risk-off sentiment among investors, leading to cautious trading in gold, even as it remains range-bound with a slight upward bias anticipated, he added.
In the international market, Comex gold futures for the June contract fell by USD 19.13, or 0.41 per cent, to USD 4,665.57 per ounce in New York.
Gold is trading in a narrow range for two consecutive days of decline, as renewed geopolitical anxiety after US President Donald Trump threatened to strike Iranian civilian infrastructure, raising concerns over a prolonged conflict and its broader economic fallout, said Renisha Chainani, Head of Research at Augmont.
Trump also issued a fresh ultimatum to Iran to reopen the Strait of Hormuz by April 8, warning of strikes on power plants and other civilian infrastructure.
Tehran rejected the demand and continued attacks on regional energy assets, although diplomatic channels remain active, with reports suggesting discussions around a 45-day ceasefire framework.
Rising crude oil prices have also heightened concerns that inflation could resurface, potentially pushing major global central banks, including the US Federal Reserve, to adopt a more hawkish stance, Chainani said.
Investors are now awaiting US GDP numbers and the Federal Open Market Committee (FOMC) meeting minutes later this week for further guidance on gold prices, she added.