Gold prices rose by Rs 300 to reach Rs 1.65 lakh per 10 grams in the national capital on Monday, supported by a weaker US dollar and growing optimism surrounding a possible peace agreement between the United States and Iran.
According to local market traders, gold of 99.9 per cent purity climbed Rs 300 to Rs 1,65,200 per 10 grams, inclusive of taxes, compared with Friday’s closing level of Rs 1,64,900 per 10 grams. Silver prices, however, remained flat at Rs 2,71,000 per kilogram, according to market participants.
Analysts attributed the rise in bullion prices to easing geopolitical tensions, lower US Treasury yields and weakness in the dollar, although appreciation in the rupee restricted further gains in domestic gold prices.
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“Gold traded with a mildly positive trend, though the sharp appreciation in the rupee capped gains in the domestic market,” said Jateen Trivedi. The rupee strengthened by 35 paise to settle provisionally at 95.25 against the US dollar on Monday, extending gains for the third consecutive trading session. The currency was supported by optimism that Washington and Tehran were moving closer to a peace agreement despite continuing disagreements over issues such as restrictions linked to the Strait of Hormuz.
In international markets, spot gold advanced by USD 60.69, or 1.35 per cent, to USD 4,570.07 per ounce. Silver also surged more than 3 per cent to USD 78.18 per ounce. “Gold began the week on a positive note, recovering part of last week’s losses as optimism surrounding a possible US-Iran agreement reduced concerns about elevated energy prices and inflationary pressures,” said Saumil Gandhi.
According to reports, progress toward a diplomatic framework—including efforts to restore shipping activity through the Strait of Hormuz and reduce regional tensions—improved overall market sentiment. Gandhi added that developments related to US-Iran negotiations are likely to remain the primary factor influencing precious metal prices this week.
“Further diplomatic progress could support gold and silver by easing inflation concerns tied to energy markets. However, any setback in negotiations or renewed geopolitical tensions could increase volatility and negatively impact sentiment,” he said.
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