Gold prices traded higher in the domestic futures market on Tuesday, tracking firm global cues and improved sentiment amid easing dollar pressure and hopes of renewed geopolitical talks.On the Multi Commodity Exchange (MCX), gold futures for the June 2026 contract rose Rs 1,981, or 1.30%, to Rs 1,54,053 per 10 grams. The contract touched a high of Rs 1,54,170 and a low of Rs 1,52,700 during the session.The August 2026 contract also gained Rs 2,024, or 1.31%, to trade at Rs 1,56,645 per 10 grams, after hitting an intraday high of Rs 1,56,855.Meanwhile, the October 2026 contract edged higher by Rs 1,231, or 0.78%, to Rs 1,58,401 per 10 grams.Separately, in international market, spot gold rose 1.5% to $4,808.69 per ounce by 11:31 a.m. ET, while US gold futures gained 1.4% to $4,833.10, Reuters reported.Market sentiment improved after reports that negotiating teams from the US and Iran could return to Islamabad this week to restart talks, following the collapse of weekend discussions that led Washington to impose a blockade on Iranian ports.“The direction of the gold market will depend on how the talks go in Pakistan and what kind of progress is made heading into the weekend. If we see positive news, metals will continue higher,” said Bob Haberkorn, senior market strategist at RJO Futures, Reuters quoted.“Lower dollar, lower oil right now is helping gold out, being that when the war started, there was a rush to cash and a concern about being able to accumulate energy supplies,” he added.The US dollar drifted lower while oil prices also eased, making dollar-denominated bullion more affordable for holders of other currencies.Data showed US producer prices increased less than expected in March as the cost of services remained unchanged, although rising energy prices linked to the Iran war continued to fuel inflation pressures.Despite being seen as an inflation hedge, gold tends to lose appeal in a higher interest rate environment since it does not offer yield.Traders are now pricing in a 28% probability of a US rate cut this year, compared with expectations of two rate cuts before the conflict began.“As long as the market does not begin to seriously consider a rate hike by the US Federal Reserve – there are no signs of this so far – the gold price is unlikely to fall much further,” analysts at Commerzbank said.Among other precious metals, spot silver surged 4.7% to $79.12 per ounce, platinum rose 0.9% to $2,088.13, while palladium edged 0.2% lower to $1,571.02.

US wholesale prices rose sharply in March as the Iran war drove up energy costs, adding to inflation pressures and complicating the Federal Reserve’s policy outlook.Producer prices, which measure inflation at the wholesale level before it reaches consumers, rose 0.5% from February and 4% from March 2025, marking the biggest annual increase in more than three years, AP reported.Energy prices surged 8.5% month-on-month, reflecting the impact of the Middle East conflict on global oil markets.However, core producer prices –which exclude volatile food and energy components- rose a modest 0.1% from February and 3.8% year-on-year, indicating relatively contained underlying inflation.The rise in wholesale inflation adds to challenges for the US Federal Reserve, which has been under pressure from President Donald Trump to cut interest rates, even as some policymakers lean toward tightening due to persistent price pressures.Food prices, a politically sensitive component ahead of next year’s midterm elections, declined 0.3% in March after rising 2.4% in February.Economists track wholesale inflation closely as it provides early signals on consumer prices, with components such as healthcare and financial services feeding into the Fed’s preferred gauge — the personal consumption expenditures (PCE) index.“The decline in food prices is overdue, and welcome news for everyone,” Carl Weinberg, chief economist at High Frequency Economics, said. “Food price increases are at the core of political arguments over affordability.”The latest data follows a sharp rise in consumer inflation, with gasoline prices pushing the consumer price index up 3.3% year-on-year in March — the biggest increase since May 2024 — and 0.9% month-on-month, the steepest gain in nearly four years.Meanwhile, the International Energy Agency (IEA) warned that the Iran war could lead to an annual decline in global oil demand for the first time since the pandemic.The agency said oil demand is expected to fall by an average of 80,000 barrels per day this year, a sharp reversal from its earlier forecast of an increase of 850,000 barrels per day.The drop in demand has been driven by attacks on energy infrastructure and the shutdown of the Strait of Hormuz, with the IEA projecting a decline of 1.5 million barrels per day in the current quarter.While the initial impact has been concentrated in the Middle East and Asia-Pacific, demand destruction is expected to spread as oil prices rise and supply constraints persist.