Gold prices rebounded to Rs 1.61 lakh per 10 grams in the national capital on Tuesday after a weak US dollar and easing crude oil revived demand for the precious metals.
The price of 99.9 per cent purity climbed Rs 1,050 to Rs 1,61,450 per 10 grams (inclusive of all taxes), according to the All India Sarafa Association.
It had closed at Rs 1,60,400 per 10 grams on Monday.
Silver prices also strengthened by Rs 1,300 to Rs 2,71,000 per kilogram from the previous close of Rs 2,69,700 per kg.
Analysts said precious metals drew support from a pullback in crude oil prices, which tempered fears of an inflation shock stemming from tensions in West Asia. Lower US Treasury yields and a weak US dollar boosted the appeal of bullion prices.
Domestic gold prices also received support from rupee weakness. The weaker rupee helped offset some of the pressure from global market uncertainty and supported gains in the domestic bullion market, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.
In the international markets, spot gold gained 1 per cent to USD 4,528.75 per ounce, while silver rose 2 per cent to USD 76.29 per ounce.
"Spot gold and silver rose more than 1 per cent to USD 4,520 per ounce and around USD 77 per ounce on Tuesday as weakness in oil prices reduced worries about inflation and the path of interest rates following reports of a partial ceasefire between Hezbollah and Israel signalled a limited de-escalation in the wider regional conflict," Kaynat Chainwala, AVP Commodity Research, Kotak Neo, said.
Investor attention remains fixed on developments surrounding negotiations between Washington and Tehran, with markets oscillating between optimism over diplomatic progress and concerns that talks could unravel.
The focus is now shifting to the US macroeconomic data, including job opening numbers, comments from Federal Reserve (Fed) officials, and the nonfarm payrolls report scheduled to be released on Friday, which could influence expectations for Fed policy, Chainwala said.
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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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