Gold futures gain on spot demand

Gold prices on Tuesday gained Rs 18 to Rs 40,490 per 10 gram in futures trade as investors continued to move towards the safe-haven asset following rising tensions between the US and Iran. The tensions in Middle East region rose after US killed top Iranian commander Qasem Soleimani following an air strike on Baghdad's international airport on Friday.

On the Multi Commodity Exchange, gold contracts for February traded higher by Rs 18, or 0.04 per cent, at Rs 40,490 per 10 gram with a business turnover of 4,004 lots.

The yellow metal for April delivery traded higher by Rs 12, or 0.03 per cent, at Rs 40,691 per 10 gram in a business turnover of 288 lots. Fresh positions built up by participants led to the rise in gold prices, analysts said. Globally, gold prices rose 0.02 per cent to USD 1,569.10 per ounce in New York.