Gold prices continue to rise on Tuesday after hitting record high on Monday amid global uncertainty. Gold traded in the green on MCX (Multi Commodity Exchange) with gains of `300 as rupee weakness below `87.10 provided support to domestic prices, say analysts.
Comex gold remained range-bound between $2,930 and $2,955. Bullion consolidated in the upper-end range on Tuesday in the absence of fresh fundamental trigger. Investors awaited key economic data and events due later this week, mainly focused on Friday’s release of January Core PCE Price Index, the Federal Reserve’s preferred inflation measure, which can provide clues for the Federal Reserve’s future policy path and direction for bullion, said Saumil Gandhi, senior research analyst - Commodities at HDFC Securities.
He added that in the short term, the correction in bullion is likely to be limited due to strong inflow from investment front as well as traders preferring to enter long near the support level. “We believe the MCX gold price is likely to trade in a broader range of `85,750 to `87,100 in the short term with a moderate bullish bias. Silver’s expected range is 94,700 to 97,000. A fall below 94,780 will open further downside toward 93,600 level,” Gandhi added.
On Tuesday, MCX Gold April futures contracts opened at `86,235 per 10 gram. Silver futures for March delivery rose by `241 to `95,330 per kg on the commodities bourse. Jateen Trivedi, VP research analyst - commodity and currency, LKP Securities, said market participants are focused on upcoming PCE Price Index, which could act as the next major trigger, alongside ongoing developments in Trump’s tariff policies.