Gold traded higher on MCX on August 12 supported by a positive global trend and healthy spot demand. August gold futures rose 0.52% to Rs. 1,54,568. September silver futures advanced 0.7% to Rs. 2,37,316. Meanwhile, Brent crude futures rose 0.85% to $89.67 per barrel. US West Texas Intermediate (WTI) edged higher by 0.90% to $83.95 per barrel.
24K gold rose by Rs. 104 to Rs. 1,51,970 per 10 grams, while 22K gold also advanced by Rs. 95 to Rs. 1,41,950. By city, Mumbai and Kolkata mirrored prices at Rs. 1,51,970, while Delhi was at Rs. 1,55,010, and Chennai at Rs. 1,54,910.
US gold prices climbed while regional shares edged higher on Wednesday as geopolitical tensions rose up ahead of key US inflation data. Spot gold gained 0.46% to $4,387.03 an ounce. US gold futures rose about 0.47% to settle at $4,461.07.
Spot silver rose 0.2% to $63.45 per ounce, platinum gained 0.58% to $1,765 and palladium edged up 0.34% to $1,374.50.
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"The market is looking ahead to this week's inflation data for some kind of confirmation that inflation is in check," said Peter Grant, vice president and senior metals strategist at Zaner Metals, adding that a moderation in the annualized CPI should continue to be supportive for gold.
"Gold is still fairly well bid at this point in the wake of last week's jobs data disappointment, which eroded expectations for a rate hike in September," Grant said.
As long as prices remain above the Rs. 1,52,500 support, the buy-on-dips strategy remains intact, with Rs. 1,56,000 as the immediate hurdle. A sustained breakout above this resistance could further strengthen momentum and open the way towards Rs. 1,58,600.
The positive momentum in MCX is also supported by the potential for a US-Iran agreement to reopen the Strait of Hormuz, while geopolitical risks and oil prices remain elevated.