Gold rises over 1 pc to Rs 1.51 lakh/10g in futures trade

Gold prices surged over 1 percent to Rs 1.51 lakh per 10 grams in futures trade on Monday, April 6, as geopolitical tensions in West Asia escalated. The Multi Commodity Exchange (MCX) recorded the yellow metal for June delivery rising by Rs 1,621, or 1.08 percent, to Rs 1,51,301 per 10 grams, from its closing level of Rs 1,49,680 per 10 grams on Thursday. Commodity markets were closed on Friday due to Good Friday.

Since the conflict in West Asia began, gold has experienced a significant decline, losing nearly 9 percent from its peak of Rs 1,65,659 per 10 grams recorded on February 27, 2026. In overseas markets, gold futures for the June contract gained USD 47.55, or 1.02 percent, to USD 4,727.25 per ounce.

Analysts noted that market sentiment remained volatile following US President Donald Trump's statement that he would "bring hell" to Iran and set a new deadline for Tuesday for the opening of the Strait of Hormuz. Tehran has rejected the latest ultimatum and continued its attacks on energy assets across West Asia.

Despite the geopolitical unrest, gold has struggled to maintain its status as a safe-haven asset. Rising crude prices and expectations of tighter monetary policy by global central banks have contributed to this decline. "Gold remains down roughly 12 percent since the conflict began, as surging energy prices fueled inflation concerns and strengthened expectations of interest rate hikes," said Jigar Trivedi, Senior Research Analyst at IndusInd Securities. He added that forced liquidations in precious metals to cover losses in other markets also weighed on prices.

Investors are closely monitoring the geopolitical situation and awaiting key US macroeconomic data, such as GDP numbers and CPI readings, for further direction. Renisha Chainani, Head of Research at Augmont, noted that traders will also closely watch the US Federal Reserve's Federal Open Market Committee (FOMC) meeting minutes for signals on the interest rate cycle.

Looking ahead, Chainani expects gold prices to trade in a range influenced by these factors. The fluctuating geopolitical landscape and economic data will continue to shape the direction of gold prices in the coming weeks. As tensions in West Asia persist and global economic indicators evolve, investors will need to remain attentive to the interplay of these elements to navigate the market effectively.