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.