Gold price on MCX declined amid expectations that the US Federal Reserve may tighten monetary policy due to increased inflationary risks. Gold’s June futures fell 0.18% lower at Rs. 1,59,719 per 10 grams. Silver July futures fell 0.48% to Rs. 2,72,950 per kg.
Meanwhile, Brent crude futures rose 0.87% to $105.9 a barrel. US West Texas Intermediate (WTI) fell 0.97% to $99.22 a barrel.
24K gold rose by Rs. 49 to Rs. 1,59,930 per 10 grams. 22K gold advanced by Rs. 45 to Rs. 1,46,600. City-wise, Mumbai and Kolkata mirrored prices at Rs. 1,59,930, while Delhi was at Rs. 1,60,230, and Chennai at Rs. 1,61,670.
US gold prices held steady on Thursday, as fears of inflation were offset by optimism around a potential US-Iran peace deal.
Spot gold was unchanged at $4,543.96 per ounce. US gold futures for June delivery gained 0.2% to $4,545.50.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 1,041.74 metric tons on Tuesday.
Spot silver was steady at $75.96 per ounce, platinum lost 0.2% to $1,947.37, and palladium fell 0.1% to $1,368.75.
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Sentiment improved "after Trump's remarks stating that both the US and Iran are kind of reaching the final stages of peace deal agreement," said Kelvin Wong, senior market analyst at OANDA.
"The overall trend of the 10-year US Treasury yield since the start of early March is still in a medium-term uptrend phase. Hence, gold bulls may not be so aggressive of beating up prices at this juncture," he said.
Internationally, gold has support at $4,456, with resistance at $4,570 per troy ounce, and silver has support at $72 and $69.10, with resistance at $76.60 and $78.80 per troy ounce.
MCX gold has support at Rs. 1,57,700 and Rs. 1,56,650, and resistance is at Rs. 1,60,350 and Rs. 1,61,100, while silver has support at Rs. 2,66,600 and Rs. 2,63,000 and resistance at Rs. 2,74,400 and Rs. 2,80,000.