Gold futures rise near Rs 1.55 Lakh as crude oil prices ease

Gold futures climbed marginally to nearly Rs 1.55 lakh per 10 grams on Tuesday, supported by a decline in crude oil prices. However, concerns over persistent inflation, potential interest rate hikes and mixed global signals kept gains limited in the bullion market

New Delhi: Gold futures edged up to nearly Rs 1.55 lakh per 10 grams in a range-bound trade on Tuesday as a decline in crude oil prices provided relief to the bullion market, though concerns over inflation and higher interest rates capped gains.

On the Multi Commodity Exchange, the yellow metal for August delivery rose by Rs 131 to Rs 1,54,915 per 10 grams, with a business turnover of 8,693 lots.

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Gold prices advanced marginally, driven by easing tensions in West Asia despite ongoing fears of interest rate hikes due to persistent inflation, which has tempered the demand, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.

Meanwhile, crude oil prices dropped nearly 2 per cent and slipped below the USD 90 per barrel in the international markets. In the overseas markets, Comex gold futures for August delivery traded marginally lower at USD 4,350.47 per ounce in New York.

“Global gold markets remained volatile despite a weak US dollar and easing tensions between Iran and Israel,” Pinky Yadav, Commodity Fundamental Analyst at Choice Broking, said.

She added that Swiss gold exports declined 20 per cent in April, with China’s central bank extending its gold-buying streak to 19 consecutive months and global central banks adding 17 tonnes during the month.

On the domestic front, gold exchange-traded funds (ETFs) witnessed their first monthly outflow in a year, while returns moderated after strong annual gains.

“Fundraising activity by major AI-focused technology firms ahead of potential initial public offerings (IPOs), including SpaceX, has prompted investors to raise liquidity by selling other asset classes, contributing to broader market pressure,” Yadav said.

Market participants are awaiting key macroeconomic data for further cues on the US Federal Reserve’s monetary policy cycle and near-term direction for bullion prices, she noted.