Gold futures prices rose during trading on Tuesday, driven by fresh spot demand and the creation of new positions by market participants, according to analysts. The precious metal contracts on the Multi Commodity Exchange (MCX) witnessed an uptick as buyers showed increased interest.
Market Drivers
Analysts attributed the price increase to a combination of factors, including robust physical demand from jewellers and retailers ahead of the upcoming wedding season. Additionally, the building of fresh long positions by speculators added upward momentum to the futures market.
Price Movement
The most active gold futures contract for delivery in August 2026 on the MCX traded higher by 0.35% at Rs 71,250 per 10 grams, compared to the previous close. Silver futures also edged up, tracking gold's gains.
Globally, spot gold prices remained steady around $2,350 per ounce, as investors awaited cues from the US Federal Reserve's monetary policy meeting. A weaker US dollar index supported bullion prices, making dollar-denominated commodities cheaper for holders of other currencies.
Outlook
Market participants expect gold prices to remain supported in the near term due to geopolitical uncertainties and expectations of a pause in interest rate hikes by central banks. However, any sharp appreciation in the dollar or an unexpected hawkish stance from the Fed could cap gains.
Analysts advise traders to monitor key support and resistance levels, with immediate support at Rs 71,000 and resistance at Rs 71,600 per 10 grams on the MCX.
