According to Angel Commodities, last week, spot gold prices rose by 0.4 percent over rising global uncertainties coupled with weaker U.S. Dollar.
Finance Minister Nirmala Sitharaman hiked import duty on gold and other precious metals in the Budget to 12.5 percent from 10 percent.
According to industry experts, the decision could lead to increase in smuggling of the yellow metal in the country.
In the Budget 2019-20, the government proposed to raise the import duty on gold and other precious metals from 10 per cent at present to 12.5 percent.
In 2012, January gold import duty raised by 2 percent. However, in 2013 the United Progressive Alliance second term raised three times and set import duty at 10 percent in August 2013.
On the MCX, gold contracts for July delivery fell by Rs 15, or 0.04 percent, to Rs 34,231 per 10 gram in a business turnover of 17,059 lots.
Spot gold was 0.1% higher at $1,419.23 per ounce, as of 0426 GMT. Prices touched $1,435.99 on July 3, their highest since June 25.
Silver and gold prices have traditionally moved together, with silver tending to outperform gold when the two are rising and fall faster when both are in decline.
Analysts said fresh positions built up by participants largely in sync with a firm trend supported the upside in gold prices at futures trade here.
According to Angel Commodities, On Tuesday, spot gold prices ended higher by 2.47 percent to close at $1418.2 per ounce after rising global trade uncertainties dent the risk appetite amongst investors and in turn boost the appeal for the bullion metal.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.
The value of the August contract traded so far is Rs 4,574.52 crore and October contract saw value of Rs 510.55 crore.
GJC recommended that NEFT/RTGS facility should be made available on holidays and Sundays when there is maximum buying by the customers.
Escalation of geopolitical issues between the US and Iran has pushed the crude prices higher in H1 of the year
The value of the August contract traded so far is Rs 3,318.20 crore and October contract saw value of Rs 94.68 crore.
Sovereign gold, however, held steady at Rs 26,800 per eight gram.
The trade tensions also weighed on equity markets on June 28, boosting appeal for safe-haven bullion.
The value of the August contract traded so far is Rs 2,519.76 crore and October contract saw value of Rs 190.41 crore.
Some analysts expect a further surge in gold prices on expectations of aggressive rate cuts by the US Fed, while others see a slump in the near future on expectations that the forthcoming G-20 Summit, June 28-29, which will provide some respite in regard to the US-Iran and US-China relations.
Geopolitical tensions in the Middle East, US-China trade conflict, uncertainty around Brexit and the global slowdown have helped the yellow metal embark on its latest rally
The yellow metal has gained nearly 12 percent in a month time.
The value of the August contract traded so far is Rs 4,091.66 crore and October contract saw value of Rs 181.48 crore.
Lower purchases by India, the world's second biggest consumer after China, could limit a rally in global prices that hit a 6-year high earlier this week.
The gold rate touched an intraday high of Rs 34,893 and an intraday low of Rs 34,490 on MCX.