Gold prices witnessed a sharp rally on April 8 amid a two-week ceasefire announced by US President Donald Trump. Gold 5th June futures rose 2.28% to Rs. 1,53,710 per 10 grams on Multi-Commodity Exchange. Silver May contract also increased 5.13% to Rs. 2,43,211 per kg.
The price of 24K gold rose by Rs. 398 in early trade, with ten grams of precious metal trading at Rs. 1,53,820. The price of 22K gold also increased by Rs. 365, with ten grams of yellow metal selling at Rs. 1,41,000.
The price of ten grams of 24K gold stood at Rs. 1,53,820 in Mumbai and Kolkata and Rs. 1,52,630 in Chennai. In Delhi, the price of 10 grams of 24K gold was Rs. 1,53,970.
US gold extended gains as markets rallied after US President Donald Trump said he had agreed to suspend bombing and attacks on Iran for two weeks, easing fears of inflation.
Spot gold climbed 2.3% to $4,811.66 per ounce after rising 1.2% on Tuesday, while US gold futures for June delivery gained 3.3% to $4,840.20.
Among other metals, spot silver rose 4.3% to $76.08 per ounce, platinum gained 2.4% to $2,004.95, and palladium added 2.1% at $1,500.
The key reason for the surge in gold prices is the decline in crude oil prices amid the opening of the Strait of Hormuz.
Brent oil futures on Intercontinental Exchange (ICE) crashed 16% to a low of $91.72 a barrel over the previous day's close of $109.27.
This triggered heavy profit-booking in the forex market. While investors are squaring their US dollar positions, dragging the greenback below 99.
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Gold surges above $4,800 to three-week highs. On the daily chart, XAU/USD trades above its 20-day, 100-day, and 200-day simple moving averages (SMAs).
The Relative Strength Index has eased to near 52, breaking above the midline and indicating downside momentum has faded in the near term.
On the upside, immediate resistance is seen around $4,930, and a daily close above this level would open the way toward $4,950.
On the downside, immediate support is seen near $4,740, before a stronger demand at $4,670; a break below these could drag the index toward $4,160.