The mild pullback comes even as broader market sentiment showed signs of stabilising. Asian equities opened higher, with the MSCI Asia Pacific index rising 0.7%, led by gains in South Korea, indicating a partial return of risk appetite.
At the same time, crude oil prices remained volatile, with Brent hovering just below $110 per barrel amid uncertainty ahead of a key US deadline tied to ongoing Iran negotiations. Comments from former US President Donald Trump suggesting progress in talks, while also issuing sharp warnings, have kept markets on edge. Concerns around supply disruptions and the strategic Strait of Hormuz continue to influence commodity prices and inflation expectations.
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, gold had recently seen a rebound driven by improving sentiment around US–Iran discussions and easing crude prices.“The bounce is largely driven by short covering and relief in risk sentiment, as initial diplomatic developments reduced immediate panic. However, the situation remains uncertain, with no clarity on Strait of Hormuz reopening, keeping underlying risks intact and inflation concerns elevated,” he said.
He added that, on the domestic front, MCX gold has technical support near ₹1.49 lakh per kg and resistance around ₹1.53 lakh per kg, indicating a broad trading range in the near term.
Outlook
Analysts expect precious metals to remain highly sensitive to geopolitical headlines and macroeconomic data. While easing tensions could weigh on safe-haven demand in the short term, persistent uncertainty and elevated oil prices may continue to underpin inflation concerns, offering support to gold.
–With agencies inputs
