Gold prices on the Multi Commodity Exchange (MCX) in India surged above ₹1.5 lakh per 10 grams on Friday, driven by strong investor buying amid hopes for a US-Iran peace deal. The MCX gold rate for August futures opened at ₹1,50,595, up ₹1,663 or 1.11% from the previous close of ₹1,48,932, according to livemint.com.
The rally followed US President Donald Trump's announcement that he had canceled planned military strikes against Iran, signaling progress toward a diplomatic resolution of the conflict. Gold prices jumped as much as 3.6% in the US before settling 3.4% higher at $4,212.26 an ounce. Treasury yields and the dollar declined after Trump’s comments, boosting gold as a non-interest-bearing asset priced in US dollars, per livemint.com.
This price movement reflects the sensitivity of precious metals to geopolitical developments, particularly in West Asia. The potential peace deal could ease market uncertainty that has weighed on gold prices recently amid inflation concerns and Federal Reserve interest rate expectations. The current surge marks the highest gold price level in over two months, underscoring the metal’s role as a safe haven during geopolitical tensions, according to livemint.com.
The next key indicator for gold prices will be the US Federal Reserve’s upcoming policy decisions, which investors will closely monitor for signals on interest rates. Meanwhile, the evolving US-Iran diplomatic talks remain critical to sustaining the current momentum in gold prices, which have now crossed the ₹1.5 lakh mark on MCX for the first time since early April, per livemint.com.