Gold prices declined by 0.56%, closing at Rs 1,53,948, as investors responded to the latest updates regarding US-Iran peace negotiations. Reports indicating advancements in extending the ceasefire, alongside ongoing negotiations concerning Iran’s nuclear program and the Strait of Hormuz, have diminished the immediate demand for safe-haven assets. Nonetheless, the downside appeared constrained as the dollar lingered close to six-week lows, while the Federal Reserve upheld a prudent approach in light of ongoing inflation apprehensions.

On the macroeconomic landscape, inflation in the U.S. has escalated to its peak level in almost four years, propelled by heightened energy costs and the repercussions of tariff pass-through effects. Simultaneously, the demand from central banks persists in offering fundamental support. China has continued its gold acquisitions for the 17th month in a row, increasing its holdings by 160,000 ounces in March. This move underscores a persistent strategy of reserve diversification amid recent fluctuations in prices.

Across the globe, central banks continued to be net purchasers, underscoring robust institutional demand. Physical demand trends exhibited a varied landscape. In India, there was a modest uptick in buying interest in anticipation of Akshaya Tritiya; however, elevated prices tempered overall enthusiasm. In contrast, there has been a softening of retail demand in China, as evidenced by the decline in premiums. In the interim, India’s exports of gems and jewellery have experienced a decline, indicating a lack of robust external demand.

The market is currently experiencing new selling pressure, accompanied by an increase in open interest. Gold exhibits immediate support at Rs 1,53,315, with potential further decline toward Rs 1,52,690. On the upside, resistance is positioned at Rs 1,54,815, and a sustained movement above this threshold could drive prices toward Rs 1,55,690.