New Delhi, March 25 Gold prices rose by Rs 5,091 to Rs 1.44 lakh per 10 grams in futures trading on Wednesday, driven by strong global trends and a weak US dollar.
On the Multi Commodity Exchange, gold for the April contract increased by Rs 5,091, or 3.66 per cent, to Rs 1,44,003 per 10 grams.
Analysts said the rally in gold was fueled by improving sentiment in the global commodities market.
"Gold prices experienced a notable rally on Wednesday, driven by easing geopolitical tensions surrounding the US-Iran conflict and expectations of potential interest rate cuts amid inflation projections," said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
He added that the positive reaction in the precious metals market was due to the signs of a ceasefire, which had alleviated some of the panic selling seen earlier.
Aamir Makda, Commodity & Currency Analyst at Choice Broking, said that global central banks continued to buy gold in 2026, despite record prices, led by China and Kazakhstan.
In the international market, gold futures for April delivery rose by USD 157.9, or 3.59 per cent, to USD 4,559.9 per ounce.
Gold rose by more than 2 per cent on Wednesday, supported by a weaker dollar, while a drop in oil prices eased concerns about elevated inflation and higher global interest rates, said Jigar Trivedi, Senior Research Analyst at IndusInd Securities, amid reports of a US plan to end the war in West Asia.
The weaker dollar made dollar-priced bullion cheaper for holders of other currencies, supporting demand, he added.
With hopes of de-escalation in West Asia and a strong dollar, demand for safe-haven assets began to reassert, reinforcing the view that gold did not lose its appeal as a safe haven, Trivedi said.
Looking ahead, he noted that gold is likely to remain sensitive to the US Federal Reserve's policy path, movements in the dollar index, and geopolitical developments. However, the recent rebound suggests that price dips may continue to find support unless real interest rates rise significantly.