Gold yesterday settled marginally higher by 0.08% at Rs 152,261, buoyed by a weaker U.S. dollar and softer crude oil prices, as easing geopolitical tensions between the U.S. and Iran alleviated immediate inflation and aggressive rate hike concerns. Market sentiment experienced an uptick following indications from U.S. President Donald Trump regarding a potential swift resolution to the conflict with Iran. Concurrently, reports emerged suggesting that Tehran was assessing a U.S.-backed peace proposal.
Anticipations of reduced monetary tightening further bolstered bullion, as CME FedWatch data indicated that the likelihood of a U.S. Federal Reserve rate increase by December diminished to approximately 12% from a previous 16%. Gold maintained robust structural backing due to central bank acquisitions and investment interest. China’s central bank has augmented its gold reserves for the eighteenth consecutive month, reaching 74.64 million fine troy ounces by the end of March. The World Gold Council reports that global gold demand rose by 2% year-on-year to 1,230.9 metric tons in the first quarter of 2026, primarily fueled by a remarkable 42% increase in bar and coin demand, reaching 473.6 tons, marking the highest quarterly level since 2013.
Chinese retail investment demand exhibited remarkable strength, as bar and coin purchases surged by 67% to reach a historic high of 206.9 tons. In physical markets, Indian demand remained subdued as a result of fluctuating international prices and the depreciation of the rupee, whereas premiums in China saw an increase in anticipation of holiday-related stocking demand.
From a technical perspective, the market is experiencing new buying activity, evidenced by a 2.13% increase in open interest to 9,405 contracts, coupled with a price increase of Rs 129. Gold currently exhibits immediate support at Rs 151,465, with additional downside support identified at Rs 150,665. Resistance levels are observed at Rs 153,465 and Rs 154,665.