Gold prices increased by nearly 1 percent, reaching Rs 1.60 lakh per 10 grams in futures trading on Tuesday, driven by heightened geopolitical tensions related to the US-Iran conflict.
On the Multi Commodity Exchange, the August contract for gold rose by Rs 1,313, equivalent to a 0.82 percent gain, closing at Rs 1,60,554 per 10 grams, with a trading volume of 8,150 lots.
Analysts noted that the rise in precious metal prices was prompted by a reassessment of geopolitical risks following new military developments in West Asia, which have complicated efforts for a durable peace agreement between the US and Iran.
“Market sentiment had improved on hopes of an imminent US-Iran peace agreement but became cautious after another round of military escalation over the weekend,” stated Manav Modi, a Commodities Analyst at Motilal Oswal Financial Services Ltd.
Reports indicated that Iran’s Tasnim News Agency announced Tehran’s suspension of indirect negotiations with Washington, alongside considerations for blocking the Strait of Hormuz, due to alleged violations of the current ceasefire.
In response, US President Donald Trump dismissed claims of a collapse in talks, asserting that discussions with Iran were progressing rapidly, and mentioned that an Israeli strike on Beirut had been halted following his intervention.
Globally, Comex gold futures for the August contract surged by USD 63.79, or 1.42 percent, reaching USD 4,570.09 per ounce in New York.
Market participants are now closely monitoring the Reserve Bank of India’s (RBI) monetary policy announcement and key US labor market data this week for insights on interest rates and potential short-term trends in bullion prices, according to Manav Modi.
Published on June 2, 2026.
