Gold prices on the Multi Commodity Exchange (MCX) in India rose above ₹1.59 lakh per 10 grams on Thursday, gaining ₹521 or 0.33% to trade at ₹1,59,040. Silver prices also increased by ₹220 or 0.08% to ₹2,63,178 per kg. The gains followed a rise in global bullion prices amid renewed hopes for a resolution to the US-Iran conflict, according to livemint.com.
The increase in gold prices was supported by lower crude oil prices and a weaker US dollar in the international market. Spot gold prices gained 0.7% to $4,461.09 per ounce, while US gold futures for August delivery rose 0.5% to $4,487.90. The rise came after Israel and Lebanon agreed to a conditional ceasefire, a move seen as a potential step toward resolving the broader Middle East conflict, which had disrupted global energy markets and heightened inflation risks, livemint.com reported.
The conditional ceasefire agreement between Israel and Lebanon, contingent on a complete cessation of fire from Iran-backed Hezbollah, helped restore investor confidence in bullion. The ceasefire followed renewed fighting in the region, marking the most serious flare-up since a ceasefire took effect in April. The easing of tensions in the Middle East has historically influenced gold prices, as the metal is considered a safe haven during geopolitical uncertainty, according to livemint.com.
At 9:05 AM IST on Thursday, MCX gold and silver prices reflected the positive sentiment driven by geopolitical developments. The next key data point for the gold market will be the US inflation figures due later this week, which could further impact bullion prices, livemint.com stated.