New Delhi, Apr 24: Gold prices fell Rs 462 to Rs 1.51 lakh per 10 grams in futures trade on Friday, tracking weak global trends amid a stronger US dollar and rising crude oil rates.
On the Multi Commodity Exchange, the yellow metal for June delivery declined Rs 462, or 0.3 per cent, to Rs 1,51,299 per 10 grams in a business turnover of 8,310 lots.
Analysts said pressure on precious metals came from a firm dollar and elevated energy prices, as well as heightened inflation concerns.
Gold prices declined on Friday. The pressure on the precious metals can be attributed to a stronger US dollar and rising crude oil prices, which have intensified inflation concerns among investors, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
He added that oil prices were hovering around USD 95.84 per barrel due to geopolitical tensions, particularly in the Strait of Hormuz, which has exacerbated market uncertainty.
In the international market, Comex gold futures for the June contract slipped USD 33.54, or nearly 1 per cent, to USD 4,690.46 per ounce in New York.
Brokerage firm Kotak Securities gold hovered around USD 4,680 per ounce, heading for nearly a 3 per cent weekly loss as prolonged US-Iran tensions and the continued Strait of Hormuz blockade drove oil higher and lifted inflation concerns.
According to analysts, signs of friction between Washington and Tehran persist due to the US Navy’s blockade of Iranian ports.
Iran’s Foreign Minister, Abbas Araghchi, termed the blockade an act of war, while chief negotiator Mohammad Bagher Ghalibaf, said a complete ceasefire would be meaningful only if maritime restrictions are lifted.
Meanwhile, US President Donald Trump ordered the Navy to act against any vessels laying mines in the crucial shipping route, further dampening hopes for de-escalation.
Analysts said these developments have supported the US dollar’s strength, putting pressure on gold prices in the global markets.
Market participants are now awaiting the final University of Michigan’s consumer sentiment data for further cues on the Federal Reserve’s monetary policy path and the near-term trajectory of bullion prices, Kotak Securities said in a note. (PTI)
