Gold prices saw a rebound in futures trade on Friday, rising 1.31 per cent and hovering near ₹1.56 lakh per 10 grams. The increase was driven by strong global markets and renewed geopolitical tensions between the United States and Iran, which boosted demand for safe-haven assets like gold. On the Multi Commodity Exchange (MCX), April gold futures rose by ₹1,315, or 0.85 per cent, to ₹1,56,134 per 10 grams, with a trading volume of 7,355 lots. Internationally, COMEX April gold futures also gained $49.55, or 1 per cent, reaching $5,046.95 per ounce.
Despite the recovery, gold prices are still moving sideways due to a firm US dollar. A stronger dollar makes gold more expensive for buyers using other currencies, which can limit demand. Trading volumes also remained relatively low because mainland Chinese markets were closed for the Lunar New Year, reducing physical demand from one of the world’s largest consumers.
Recent minutes from the US Federal Open Market Committee (FOMC) showed that policymakers are divided over the future path of interest rates. Some members suggested that rate hikes could resume if inflation stays high. However, market expectations, tracked by the CME FedWatch tool, indicate at least two interest rate cuts are likely this year. Gold usually benefits from lower interest rates because the cost of holding non-yielding assets decreases, making it more attractive to investors.
Overall, gold is being supported by global uncertainties and geopolitical risks, while movements in the US dollar and interest rate expectations continue to influence short-term price trends.