Gold prices experienced a notable rebound, rising by ₹1,600 to settle at ₹1.62 lakh per 10 grams in the national capital on Friday. This increase follows positive trends in global markets, bolstered by optimism surrounding a preliminary agreement between the US and Iran, along with expectations of seasonal demand within the domestic sphere.
Market sources reported that the price of 99.9 percent pure gold increased to ₹1,62,900 per 10 grams, inclusive of all taxes, compared to ₹1,61,300 per 10 grams at the conclusion of trading on Wednesday. Silver also saw significant gains, climbing ₹5,000 to reach ₹2,74,700 per kilogram, up from ₹2,69,700 per kilogram in the prior session.
Bullion markets had been closed on Thursday due to Eid-ul-Azha. According to Hareesh V, Head of Commodity Research at Geojit Investments Ltd, gold and silver prices have risen as market participants evaluate developments regarding the US-Iran ceasefire and the US Federal Reserve’s interest rate trajectory in light of recent inflation data. He added that domestic demand during this seasonal period is supporting prices.
Hareesh further noted, “We do not foresee significant selling pressure in the near term, as underlying fundamentals continue to provide support. Silver is also likely to follow gold’s trend, driven by safe-haven demand and industrial outlook.”
In international markets, spot gold advanced nearly 1 percent to USD 4,530.72 per ounce, while silver remained mostly unchanged at USD 75.52 per ounce. Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, observed that the rise in spot gold prices was influenced by the discussions of a preliminary deal between the US and Iran, alleviating some downward pressure on the yellow metal. However, he cautioned that the absence of detailed information about the agreement would likely keep prices within a range.
Reports indicate that the US and Iran have reached a preliminary understanding to extend their ceasefire by 60 days. This memorandum of understanding could see Iran normalizing traffic through the Strait of Hormuz within a month, while both nations are expected to continue dialogue on contentious matters, such as Tehran’s nuclear stockpile and uranium enrichment, during the ceasefire period. Nonetheless, the final text of the agreement is still pending, with no public comments from US President Donald Trump or Iran’s Supreme Leader Mojtaba Khamenei.
Market participants remain vigilant regarding the developments of the proposed US-Iran agreement and are looking for further remarks from Trump, as these could serve as pivotal indicators for bullion prices, according to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.
