Meanwhile, 18-karat gold was at ₹74,310 per 10 grams.
On the global front, spot gold rose 0.6% to $3,370.67 an ounce, supported by a weaker US dollar and rising geopolitical uncertainty.
US gold futures climbed 0.5% to $3,394.90 an ounce.
Kelvin Wong, Senior Market Analyst, Asia Pacific at OANDA, said, “Dip-buyers seem to be returning as the dollar weakens. Geopolitical risks, especially involving China and the US, continue to support gold’s safe-haven appeal.”
The market now awaits fresh cues from upcoming US data.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, noted, “Gold is consolidating after the recent spike. The trend remains bullish, with support at ₹95,000 per 10 grams and resistance at ₹99,500 per 10 grams.”
Global cues
Safe-haven demand increased as the White House indicated potential talks between President Joe Biden and Chinese President Xi Jinping this week.
China’s foreign minister also urged better bilateral ties.
The US dollar index slipped 0.1%, making gold cheaper for foreign investors.
Adding to the sentiment, the OECD slashed its global growth outlook, citing trade tensions and weak investment trends.
“The OECD’s cautionary note adds to gold’s appeal as a defensive asset,” said Aksha Kamboj, Vice President, India Bullion and Jewellers Association, and Executive Chairperson, Aspect Global Ventures. “The current price correction looks like a pause in a broader upward trend. Any weak US jobs data could further boost gold demand.”
Outlook
Analysts expect gold to stay firm amid ongoing uncertainty. Investors should closely watching US economic releases this week, especially labor market data, for signs on the Federal Reserve’s next policy move.
–With Reuters inputs
