On Monday, gold prices rose by Rs 300 in the country’s capital Delhi due to weak US dollar and optimism over a possible peace agreement between the US and Iran, taking it to Rs 1.65 lakh per 10 grams. According to local market experts, the price of gold of 99.9 percent purity increased by Rs 300. At the time of market closing on Friday, its price was Rs 1,64,900 per 10 grams, which increased to Rs 1,65,200 per 10 grams (including all taxes).
However, market experts said that there was no change in the prices of silver and the price remained unchanged at Rs 2.71 lakh per kg. Analysts said that this increase in bullion (gold and silver) prices was due to reduction in geopolitical tension, softening of treasury yields and weakening of the dollar. However, a strengthening rupee limited further upside in domestic gold prices.
Rupee rising, tension decreasing
Jatin Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said gold traded with a mildly positive bias, although a strengthening rupee limited the upside in domestic prices. On Monday, the rupee strengthened by 35 paise and closed at 95.25 (provisional) against the US dollar. This was the third consecutive session when the rupee strengthened. The strengthening came amid optimism that Washington and Tehran are moving closer to a peace deal despite continuing differences over issues including sanctions over the Strait of Hormuz.
There was a rise in foreign markets also
In international markets, spot gold rose by $60.69, or 1.35 per cent, to $4,570.07 an ounce, while silver gained more than 3 per cent at $78.18 an ounce. Saumil Gandhi, Senior Analyst – Commodities, HDFC Securities, said that gold started the new week on a positive note and recovered some of the losses seen last week. Growing optimism over a potential deal between the US and Iran outweighed concerns about higher energy prices and inflationary pressures.
Iran peace talks also gained strength
According to reports, progress toward a diplomatic framework—including efforts to restore shipping through the Strait of Hormuz and reduce regional tensions—supported broader market sentiment. Looking ahead, the main basis of the trend of precious metals this week is expected to be the further developments related to US-Iran talks. Gandhi said continued diplomatic progress could support gold and silver by reducing inflationary concerns related to energy markets. At the same time, any interruption in talks or renewed geopolitical tension can increase market volatility and weigh heavily on investor morale.
