Spot gold fell 0.3% to $3,369.98 per ounce by 0249 GMT.
US gold futures held steady at $3,390 an ounce.
The metal had surged by 2.7% in the previous session, its best single-day gain in over three weeks.
In India, gold traded at:
- ₹99,060 per 10 grams for 24K gold
- ₹90,800 per 10 grams for 22K
- ₹74,300 per 10 grams for 18K
(Source: GoodReturns)
The dollar index edged up after hitting a six-week low, pressuring gold.
Brian Lan, Managing Director at GoldSilver Central, said, “Gold came down as the dollar recovered slightly. It remains inversely correlated for now.”
Despite the dip, demand for gold remains strong
due to heightened geopolitical and economic risks. Investors are closely watching developments between the US and China.
A potential call between US President Joe Biden and Chinese President Xi Jinping this week may impact sentiment.
The US also plans to double tariffs on imported steel and aluminium starting Wednesday. Meanwhile, the European Commission plans to push for tariff relief, but tensions remain high.
On the geopolitical front, tensions in Eastern Europe continue to drive safe-haven demand. Russian media reports suggest that Moscow has made aggressive demands at peace talks with Ukraine, adding further uncertainty.
Aksha Kamboj, Vice President, India Bullion and Jewellers Association (IBJA), noted, “Gold rebounded from recent lows as dip buyers returned amid growing concerns over US-China relations. Russia-Ukraine tensions added to the risk-off mood. In the short term, gold’s safe-haven appeal will likely grow, especially ahead of the US non-farm payrolls data.”
Rahul Kalantri, VP Commodities at Mehta Equities, said, “Gold has support at $3,345–$3,320 per ounce and resistance at $3,388–$3,410 per ounce. In rupee terms, support lies at ₹96,280–₹96,000 per 10 grams, with resistance at ₹97,150–₹97,440 per 10 grams.”
Jateen Trivedi, VP Research Analyst at LKP Securities, added, “Focus now shifts to key US economic data and Fed speeches. Gold may test $3,400 an ounce if the safe-haven trend continues.”
Outlook
Gold is likely to remain volatile ahead of the US non-farm payrolls report and key economic data this week. Rising global tensions and trade conflicts continue to offer support. Analysts suggest tracking resistance at $3,400 per ounce and watching for moves based on Fed guidance and employment data.
–With Reuters inputs
