Gold Wobbles Amid Dollar Strength and Oil Surge

Gold prices experienced a decline of Rs 462 to Rs 1.51 lakh per 10 grams in futures trading on Friday, largely due to a stronger US dollar and increased crude oil prices. The Multi Commodity Exchange reported these figures for June delivery, accompanying a trade volume of 8,310 lots.

According to market analysts, the precious metal has been under pressure from a firm dollar and elevated energy prices, exacerbating inflation concerns among investors. Gaurav Garg, a Research Analyst at Lemonn Markets Desk, highlighted how oil prices, currently around USD 95.84 per barrel, have contributed to market uncertainties amid geopolitical tensions, particularly in the Strait of Hormuz.

In the international market, Comex gold futures for June saw a drop of USD 33.54, close to 1 percent, leading to a nearly 3 percent weekly loss. Analysts believe US-Iran tensions and the naval blockade in the Strait of Hormuz are factors sustaining the US dollar's strength, impacting gold prices. Investors await further economic data to understand the potential trajectory of bullion prices and Federal Reserve policies.

(With inputs from agencies.)