Gold Ticks Up Amid Ongoing Geopolitical Risks

Gold prices inched up by Rs 100 to Rs 1,47,500 per 10 grams in New Delhi as investors maintained a cautious stance amid ongoing US-Iran diplomatic developments and uncertainty surrounding the Federal Reserve's policy outlook. The yellow metal of 99.9% purity had closed at Rs 1,47,400 per 10 grams on Monday.

According to Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, gold edged up on Tuesday as investors maintained a cautious stance amid ongoing US-Iran diplomatic developments and uncertainty surrounding the Federal Reserve's policy outlook. Bullion has remained range-bound over the last two sessions as traders awaited greater clarity on geopolitical risks and the future direction of US interest rates.

Spot gold was trading lower at $4,049.20 per ounce in the global markets, despite a rise in spot silver to nearly 1% to trade at $58.66 per ounce. This increase in spot silver was attributed to stronger-than-expected US manufacturing data that supported the metal by reinforcing optimism over industrial demand for the white metal.

However, Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, noted that gold rose in early trade but later erased its gains to trade around $4,050 per ounce due to rebounding oil prices. Brent crude futures went up nearly 1% to trade at $84.36 per barrel in New York.

Kaynat Chainwala, AVP Commodity Research, Kotak Securities, warned that gold and silver face sharp two-way risk on multiple fronts and are hence expected to remain rangebound due to uncertainty around the diplomatic path and a heavy data calendar ahead.