Gold increased by 0.2% to close at Rs 149,981, buoyed by a weaker dollar and a sense of cautious optimism regarding a possible ceasefire in the ongoing U.S.-Israel–Iran conflict. Nonetheless, uncertainty continues to be high following recent alerts from U.S. President Donald Trump concerning the Strait of Hormuz, an essential oil transportation corridor.

Concerns regarding escalating oil prices and inflation persist in influencing market sentiment, particularly in light of robust U.S. economic indicators—March nonfarm payrolls increased by 178,000 and unemployment fell to 4.3%—prompting markets to predominantly dismiss the possibility of any Federal Reserve rate cuts this year. On the demand side, COMEX gold speculators marginally raised their net long positions, indicating a slight uptick in investor interest.

Physical demand exhibited varied trends—India experienced a transition to premiums as reduced prices drew in buyers, whereas China encountered slightly weaker premiums in the context of cautious purchasing behavior. Meanwhile, central bank demand remains a crucial pillar, with ongoing purchases propelled by diversification needs and geopolitical hedging, although high prices may temper the pace of buying in the future.

From a technical perspective, the market is experiencing new buying activity, as evidenced by an 8.34% increase in open interest, reaching 7,158. Immediate support is identified at Rs 148,390, with a breach below possibly challenging Rs 146,800. On the upside, resistance is positioned at Rs 151,480, and a sustained move above this threshold could propel prices toward Rs 152,980.