Gold prices increased by 0.99% to close at Rs 1,51,776, as markets recalibrated their views on geopolitical risks following U.S. President Donald Trump’s indication of a temporary de-escalation by consenting to a two-week pause in military action against Iran. The action alleviated short-term pressures and created opportunities for dialogue, thereby bolstering bullion.

Simultaneously, apprehensions regarding inflation persist at heightened levels, driven by increasing energy costs. Prolonged disruptions in oil supply are estimated to potentially elevate U.S. inflation beyond 4%, thereby complicating the policy outlook for the Federal Reserve. Robust economic indicators from the United States, characterized by substantial job creation and a declining unemployment rate, have diminished the likelihood of interest rate reductions in the current year, potentially constraining the upward momentum in gold prices.

On the demand side, there has been an enhancement in physical purchasing activity. Gold experienced a premium in India following a short hiatus, whereas demand in China persisted at a stable level, even with marginally reduced premiums. Significantly, the People’s Bank of China has maintained its gold accumulation for the 17th consecutive month, highlighting robust demand from global central banks.

From a technical perspective, the market is experiencing new buying activity, as evidenced by increasing open interest in conjunction with rising prices, which suggests a bullish trend. Immediate support is identified at Rs 1,50,535, with potential further decline towards Rs 1,49,290. On the upside, resistance is positioned at Rs 1,53,980, and a movement above this threshold could propel prices towards Rs 1,56,180.