Business
Gold Prices Jump Over 1% At 1,25,106 Per 10 Grams On Festive Demand
Mumbai: Gold prices saw a strong rise on Tuesday as expectations of a US Federal Reserve rate cut and festive season demand boosted sentiment.
In early trade on the Multi Commodity Exchange (MCX), gold futures for December delivery were up 1 per cent at Rs 1,25,106 per 10 grams around 9:47 am.
Silver prices also moved higher. MCX Silver December contracts were trading 1.34 per cent higher at Rs 1,56,551 per kg during the same time.
“In INR gold has support at Rs1,23,150-1,22,580 while resistance at Rs1,24,650-1,25,200,” analysts said.
“Silver has support at Rs1,53,650-1,52,800 while resistance at Rs1,56,140, 1,57,000,” they added.
The sharp move in the domestic market followed a strong rally in global prices.
International gold rates jumped nearly 2 per cent in the previous session as growing hopes of an interest rate cut by the US Fed encouraged investors to shift towards safe-haven assets like gold.
Gold generally performs well in a low-interest-rate environment because it does not generate interest like bonds or deposits.
When interest rates fall and returns from other investments decline, investors prefer gold as a more attractive option.
In India, ongoing wedding season demand has also contributed to the strength in prices, as gold buying traditionally increases during this period.
Investors are now waiting for key economic data from the United States, including retail sales, jobless claims and producer price inflation numbers.
The release of these figures was delayed due to the recent US government shutdown and is expected to influence the Fed’s next policy decision.
For now, sentiment remains positive, and analysts believe price volatility may continue depending on upcoming global economic indicators, experts said.
“Precious metals found support from the New York Fed Governor’s dovish remarks on a possible December rate cut, with market expectations for a 25 bps has surged to around 81 per cent, up sharply from about 40 per cent a week earlier,” analysts said.
A United Airlines plane approaches the runway at Denver International Airport on March 23, 2026.
Al Drago | Getty Images
United Airlines slashed its 2026 earnings outlook Tuesday as it grapples with a surge in jet fuel prices due to the Iran war, but CEO Scott Kirby said demand remains strong.
United said it could earn between $7 and $11 a share on an adjusted basis this year, down from its previous forecast of between $12 and $14 a share that it released in January, more than a month before the U.S. and Israel attacked Iran.
Wall Street had already been adjusting its expectations for the year because of higher fuel. Analysts polled by LSEG had forecast that United’s adjusted, full-year earnings would be $9.58 a share.
The carrier, like others, is trimming some of its planned flying this year to reduce costs. Lower capacity can drive up airfare, with fewer seats on the market.
For the second quarter, United forecast adjusted earnings of between $1 and $2 a share. Analysts had expected $2.08 a share for the quarter. United estimated its fuel price would average $4.30 a gallon in the second quarter.
The carrier said it expects its revenue to cover between 40% to 50% of the fuel price increase in the second quarter, as much as 80% in the third and between 85% and 100% by the end of the year.
United reiterated that it is tweaking its schedules to adjust to higher fuel, with capacity in the second half of the year expected to be flat to up about 2% on the year. It grew 3.4% in the first quarter.
Here is what United Airlines reported for the quarter that ended March 31 compared with what Wall Street was expecting, based on estimates compiled by LSEG:
- Earnings per share: $1.19 adjusted vs. $1.07 expected
- Revenue: $14.61 billion vs. $14.37 billion expected
Revenue, profit climb
Revenue overall rose more than 10%, to $14.61 billion, up from the $13.21 billion from a year before.
For the first quarter, United’s net income rose 80% to $699 million, or $2.14 cents a share, compared with net income of $387 million, or $1.16 cents a share, a year earlier. Adjusted for one-time items, United posted earnings per share of $1.19 a share.
Unit revenue was up in every reported segment, including for domestic U.S. flights, where it rose 7.9% to $7.9 billion from a year earlier, signaling strong pricing power in the quarter.
Jet fuel in the U.S. was going for $3.51 a gallon on Monday, down from the high on April 2 of $4.78, but far above the $2.39 on Feb. 27, the day before the first attacks on Iran, according to prices assessed by Platts.
Airline executives have said demand has remained robust even while they have increased fares and checked bag fees as they pass along higher fuel prices to customers.
“Bookings are strong,” Kirby told CNBC’s “Squawk Box” on Wednesday.
United and the rest of the industry have become more reliant on travelers who are willing to shell out more for flights and bigger seats, and who are less affected by price increases.
Alaska Airlines pulled its 2026 forecast on Monday because of higher fuel prices. It has raised fares about $25, CEO Ben Minicucci told analysts Tuesday.
Merger ambitions?
Kirby is likely to face questions on the company’s 10:30 a.m. ET earnings call on Wednesday about his ambitions for a merger with another airline.
Kirby floated a potential merger with American Airlines to a Trump administration official earlier this year, according to a person familiar with the matter, but President Donald Trump said he was against the idea.
“I don’t like having them merge,” he told CNBC’s “Squawk Box” on Tuesday morning. He said he would like someone to buy struggling discount carrier Spirit but he also suggested that the federal government could “help that one out.”
American also rejected the idea of a merger with United last week.
When asked about floating the merger, Kirby declined to confirm the meeting to CNBC’s “Squawk Box” on Wednesday but said: “We want to create a truly global airline.”
Kirby reiterated his view that the U.S. is at a deficit in international air travel as customers fly on international competitors, some of which are state owned.
NI Affairs Committee told even if conflict ends immediately it will take time for supply chains to return to normal.
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The president also said the US will continue to blockade Iran’s ports until peace talks progress.
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