Gold experienced a decline of 0.51%, concluding at Rs 152,652, as investors exhibited caution in light of ongoing developments in the Middle East and assessed the most recent US inflation figures. In March, the Consumer Price Index experienced a significant increase of 0.9%, marking the largest monthly rise since June 2022, which elevated the annual inflation rate to 3.3%.

Nonetheless, core CPI experienced a modest rise to 2.6%, suggesting that the wider effects of elevated energy prices are still in the process of materializing. The minutes from the Federal Reserve’s March meeting indicated a more hawkish stance, as multiple policymakers expressed willingness to consider additional rate hikes should inflation persist above the 2% target, particularly in light of ongoing geopolitical tensions. While a temporary ceasefire has halted direct hostilities, the persistent blockade of the Strait of Hormuz and the ongoing tensions related to Lebanon maintain a heightened level of uncertainty.

On the demand side, India has experienced a modest increase in activity as the festive buying season approaches, especially with Akshaya Tritiya on the horizon; however, elevated prices are constraining more assertive purchasing behavior. In contrast, premiums in China have exhibited a decline, indicative of diminished retail demand. Meanwhile, China’s central bank persists in its market support, prolonging its gold acquisitions for the 17th consecutive month.

From a technical perspective, the market is experiencing renewed selling pressure, as evidenced by a 2.63% increase in open interest to 7,579, which suggests the establishment of new short positions. Immediate support is identified at Rs 151,835, with a breach below expected to challenge Rs 151,020. On the upside, resistance is positioned at Rs 153,375, and a breach above this level may propel prices toward Rs 154,100.