Gold futures fall Rs 992 to Rs 1,59 lakh/10g on weak global cues, strong dollar

New Delhi: Gold price declined by Rs 992 to Rs 1.59 lakh per 10 grams in the futures trade on Friday, tracking a bearish sentiment in the international markets and a stronger US dollar.

On the Multi Commodity Exchange, the yellow metal for April delivery depreciated by Rs 992, or 0.62 per cent, to Rs 1,59,279 per 10 grams in a business turnover of 7,891 lots.

Analysts said gold came under pressure as the US dollar strengthened, making the precious metal less attractive for holders of other currencies.

"Gold is currently consolidating as markets balance macroeconomic headwinds with geopolitical risk," Renisha Chainani, Head of Research at Augmont, said.

The dollar index, which gauges the greenback's strength against the basket of six currencies, was trading 0.5 per cent higher at 100.23, weighing on bullion prices in the overseas markets.

Chainani said the stronger US dollar has limited the upside in precious metals, while persistent inflation concerns linked to the ongoing Iran conflict have reduced expectations of a near-term Federal Reserve rate cut.

According to analysts, traders are also closely tracking geopolitical developments in West Asia and macroeconomic signals that could influence the trajectory of the Federal Reserve's monetary policy outlook.

Globally, Comex gold futures for the April contract fell USD 31.69, or nearly 1 per cent, to USD 5,094.11 per ounce.

On the outlook, Chainani added that the gold is consolidating currently, with prices expected to move towards the USD 5,250 per ounce in the near term, which translates to around Rs 1.63 lakh per 10 grams in the domestic market.

She further stated that a rise towards USD 5,300 per ounce, or around Rs 1.65 lakh per 10 grams, cannot be ruled out if geopolitical tensions persist and safe-haven demand strengthens.