Gold prices opened higher on Multi-Commodity Exchange (MCX) amid the dollar index easing 0.20% and investors continue to monitor the situation in the Middle East for cues. At around 9:00 am, Thursday, Gold May futures contract rose 0.45% to Rs. 1,53,100 per 10 grams on MCX, while Silver May futures contract advanced 0.83% to Rs. 2,55,242 per kg.
Meanwhile, Brent crude futures dropped 0.5% to $94.49 a barrel. US West Texas Intermediate crude futures were down 0.8% at $90.59 a barrel.
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The price of 24K gold increased by Rs. 22, with 10 grams of the precious metal trading at Rs. 1,55,570. The price of 22K gold also advanced by Rs. 20, with 10 grams of the yellow metal selling at Rs. 1,42,600.
The price of 10 grams of 24-carat gold stood at Rs. 1,55,570 in Mumbai and Kolkata. While Chennai traded higher at Rs. 1,56,230 and Delhi came in at Rs. 1,55,720.
On Thursday, US gold prices advanced, supported by a weaker dollar, while investors weighed growing optimism over a potential US-Iran deal to end the war that has pushed up energy prices and fuelled fears of higher inflation.
Spot gold rose 0.9% to 4,830.66 per ounce. US gold futures for June delivery gained 0.6% to $4,852.40.
Spot silver rose 1.4% to $80.17 per ounce. platinum gained 1.2% to $2,134.55, and palladium was up 1.1% at $1,590.14.
The Federal Reserve may need to wait until 2027 to cut interest rates if an extended bout of high oil prices from the Iran war delays inflation's progress towards the US central bank's 2% goal, Chicago Fed President Austan Goolsbee said on Tuesday.
The market expects a 30% chance of a rate cut this year. Higher interest rates tend to weigh on gold by increasing the opportunity cost of holding a non-yielding asset.
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"Gold and silver are expected to remain well-supported this Akshaya Tritiya, underpinned by strong structural drivers and seasonal demand. Gold is likely to trend toward Rs. 1,60,000-Rs. 1,65,000 in the near term, with further upside potential to Rs 1,80,000 over the medium term," said Mr. Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd., President of India Bullion and Jewellers Association Ltd.
Internationally, gold has support at $4,800 and $4,770. while resistance is at $4,850 and $4,884 per troy ounce. Silver has support at $76.60 and $74. while resistance is at $82.80 and 85 per troy ounce.