Gold prices inched up by Rs 100 to Rs 1,47,500 per 10 grams in the national capital on Tuesday, while silver remained flat amid a mixed trend in the international markets.
The yellow metal of 99.9 per cent purity had closed at Rs 1,47,400 per 10 grams on Monday.
However, silver prices remained unchanged at Rs 2,26,500 per kilogram (inclusive of all taxes), according to the All India Sarafa Association.
Traders said gold witnessed modest buying in the domestic market, while silver traded in a narrow range.
Gold edged up on Tuesday as investors maintained a cautious stance amid ongoing US-Iran diplomatic developments and uncertainty surrounding the Federal Reserve’s policy outlook, said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Bullion has remained range-bound over the last two sessions as traders awaited greater clarity on geopolitical risks and the future direction of US interest rates, he added.
In the global markets, spot gold was trading lower at USD 4,049.20 per ounce.
Spot gold rose in the early trade but later erased its gains to trade around USD 4,050 per ounce as oil prices have rebounded, said Praveen Singh, Head of Commodities at Mirae Asset ShareKhan.
Brent crude futures went up nearly 1 per cent to trade at USD 84.36 per barrel in New York.
A cargo vessel has been hit by an unknown projectile off the coast of Oman, according to the United Kingdom Maritime Trade Operations.
Meanwhile, spot silver in the international markets rose nearly 1 per cent to trade at USD 58.66 per ounce.
Spot silver rose 1 per cent to USD 58 an ounce after stronger-than-expected US manufacturing data supported the metal by reinforcing optimism over industrial demand for the white metal, Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
She added that investors are awaiting a slew of US macroeconomic data for further clarity on the Federal Reserve’s monetary policy outlook.
“With uncertainty around the diplomatic path and a heavy data calendar ahead, gold and silver face sharp two-way risk on multiple fronts and are hence expected to remain range-bound,” Chainwala said.