New Delhi: Gold prices rose for a fifth consecutive session on Tuesday as escalating tensions in West Asia drove investors towards safe-haven assets, while rising crude oil prices fuelled fresh inflation concerns.

On the Multi Commodity Exchange of India (MCX), gold April futures climbed 2.53 per cent to Rs 1,66,199 per 10 grams on Monday. MCX silver May futures, however, declined 0.90 per cent to Rs 2,80,090 per kg.

The MCX remained closed for the first half of trading on Tuesday on account of Holi, with evening trade scheduled to resume at 5 pm.

Global gold rates climb on safe-haven demand

In international markets, spot gold gained 0.8 per cent to $5,360 an ounce, while US gold futures advanced nearly 1 per cent. Spot silver rose about 1.9 per cent to $91.11 an ounce.

Market analysts said investors are seeking safety amid intensifying US-Iran hostilities and fears of prolonged geopolitical instability in the Middle East.

The US dollar index strengthened 0.19 per cent to 98.57, making dollar-denominated bullion more expensive for overseas buyers and limiting further gains in gold prices.

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Oil prices jump, inflation concerns mount

Crude oil prices also surged after Iranian retaliatory strikes reportedly targeted oil and gas facilities in Saudi Arabia and raised concerns over shipping through the strategic Strait of Hormuz.

US crude futures rose 1.4 per cent to $72.23 per barrel, while Brent crude gained 1.87 per cent to trade at $79.2 in early Tuesday trade. Rising oil prices have heightened fears of supply disruptions and added to inflationary pressures globally.

US President Donald Trump said the military offensive against Iran would continue “for as long as it takes”, further escalating uncertainty in financial markets.

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Focus on US economic data and Fed Policy

Investors are now closely watching key US economic indicators, including Manufacturing and Non-Manufacturing PMI, ADP Non-Farm Employment Change and unemployment data, for signals on the Federal Reserve’s interest rate trajectory. Persistent inflation could prompt the Fed to keep rates higher for longer, influencing bullion demand.

Gold has rallied nearly 25 per cent so far in 2026, following a 64 per cent surge last year, supported by strong central bank buying, sustained inflows into exchange-traded funds and concerns over the US Federal Reserve’s independence.

With geopolitical tensions in West Asia intensifying, analysts expect gold prices to remain volatile in the near term, with safe-haven flows continuing to drive market sentiment.

IANS