New Delhi, March 10 Gold prices rose by Rs 1,853 to Rs 1.62 lakh per 10 grams in futures trading on Tuesday, supported by a weak US dollar and improved global sentiment.
According to the Multi Commodity Exchange, the yellow metal for April delivery appreciated by Rs 1,853, or 1.16 per cent, to Rs 1,62,152 per 10 grams in a trading volume of 7,355 lots.
Analysts said that gold prices recovered from the previous day's losses after the US dollar weakened following comments by President Donald Trump suggesting that the conflict with Iran could be nearing an end.
In the international markets, Comex gold futures for the April contract gained USD 75.91, or 1.5 per cent, to USD 5,179.61 per ounce.
The dollar index, which measures the strength of the US dollar against a basket of six currencies, was trading 0.34 per cent lower at 98.84, providing support to gold prices in overseas trade.
"Gold prices rose to around USD 5,180 per ounce, as the dollar weakened after President Trump signaled that the conflict in the Middle East could end soon," said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
Trump on Monday sought to reassure markets amid ongoing military tensions with Iran, describing the operation as a "minor excursion" and a "short-term" endeavor.
According to Trivedi, earlier concerns that a prolonged conflict in the region could trigger a spike in inflation prompted traders to scale back their expectations for US Federal Reserve interest rate cuts this year.
Market participants now anticipate approximately 40 basis points (bps) of easing by year-end, down from over 55 bps in late February.
Investors are now awaiting key macroeconomic data, including the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE), due later this week, for further insights into the Fed's monetary policy outlook and near-term trajectory for gold prices, he added.