Gold scaled a near four-month peak on Tuesday supported by a weaker US dollar, while non-yielding bullion also attracted investors seeking an inflation hedge. Brent oil, too, topped $70 a barrel with optimism building about the demand outlook in key regions, such as the US and Europe, but later declined.
Spot gold was up 0.15 per cent at $1,869.20 per ounce at 7 pm IST, after hitting its highest since January 29 earlier in the session. Gold in Delhi rose by Rs 333 to Rs 47,833 per 10 gram in line with a rally in the global precious metal, according to HDFC Securities.
“The narrative is clearly shifting towards inflation … but perhaps more critically, you have got the dollar weakness, which is probably the key and prime driver,” said analyst Ross Norman.
