Yellow metal likely to touch Rs 9500

Gold is likely to touch Rs 9,500 per 10 gram soon from the current level of Rs 9,350, with the fundamentals in favour of investment in the yellow metal.

In London, the precious metal struggled to hit the $670 mark despite repeated attempts in the last two weeks. Experts, however, believe gold would move up once the Iran-UK crisis cools down.

Gold drifted lower on Tuesday in London following a drop in oil prices on hopes of a diplomatic solution to the Iran-UK stand-off. Spot gold fell to $663.20 an ounce after surging slightly to $665.20 in Asia.

Experts said that while oil was lending some support to bullion, analysts were surprised that the metal had not pushed higher, with crude oil prices hovering near the six-month highs.

However, oil remained steady in European on Monday, as traders booked profits and also awaited the result of the stand-off. A flare-up in the Iran crisis would result in supply disruptions from the world's fourth largest oil producer.

"Gold has moved in the $10 range in the last two weeks between $656-666 an ounce, which indicates that the precious metal is rangebound. Simultaneously, it opens room for upward movement, as buyers would probably go on Easter holiday after breaking the $670 barrier," an analyst said.

In Zaveri Bazar, spot traders remained bullish throughout Tuesday on positive demand arising from the wedding season ahead.

The demand for gold in India, the world's largest consumer, is bound to increase this month following a strong demand for the yellow metal in making jewellery ahead of the wedding season in May and June.