Gold prices concluded the trading session with an increase of 1.59%, reaching Rs 152132. This uptick was bolstered by diminishing inflation worries, as indications of potential diplomatic advancements between the U.S. and Iran exerted downward pressure on both the dollar and crude oil prices. U.S. President Donald Trump suggested that a potential agreement with Iran could be approaching finalization and declared a temporary halt in the operations escorting vessels through the Strait of Hormuz. Reports indicate that the White House is nearing the completion of a memorandum with Iran, which may encompass increased UN inspections, limitations on uranium enrichment for a period of 12 to 15 years, and a phased approach to sanctions relief in return for Iran’s commitment to restraining its nuclear activities.

The potential easing of geopolitical tensions has alleviated worries regarding sustained energy-induced inflationary pressures, facilitating a recovery in gold prices following considerable selling activity during the conflict period. Physical demand trends exhibited a varied landscape across key consuming regions. In India, gold demand remained subdued as a result of fluctuating international prices and a weakening rupee, with dealers presenting discounts between $5 and premiums of $9 per ounce above the official domestic prices.

Concurrently, Chinese premiums have increased to a range of $16–$20 per ounce, driven by stockpiling activities in anticipation of the May Day holiday. The World Gold Council indicated that global gold demand increased by 2% year-on-year, reaching 1,230.9 metric tons in the first quarter of 2026, bolstered by robust investment demand and ongoing purchases by central banks. Demand for bars and coins experienced a significant increase of 42% year-on-year, reaching 473.6 tons, with China achieving a record quarterly demand of 206.9 tons.

From a technical perspective, the market is experiencing short covering, as evidenced by a 6.16% decline in open interest to 9209, alongside a price increase of Rs 2379. Gold is encountering immediate support at Rs 151530, with additional downside support at Rs 150920. Resistance is identified at Rs 152820, and an upward movement beyond this threshold may propel prices towards Rs 153500.