Gold Price Jumps Above ₹1.59 Lakh Per 10 Grams on MCX Amid US-Iran Trade Uncertainty

Global Uncertainty Drives Gold and Silver Prices in India

Gold and silver prices in India opened higher on Tuesday, following gains in global bullion prices, amid uncertainty over the US-Iran peace talks. The international market saw steady gold prices, as investors awaited further details on the status of the US-Iran talks amid conflicting news.

In the global market, spot gold price remained steady at $4,481.53 per ounce, while US gold futures for August delivery gained 0.1% to $4,511.20. The spot silver price rose 0.5% to $75.21 per ounce. The uncertainty over the US-Iran peace talks and a potential ceasefire kept investors on the edge, while expectations of interest rate hikes by the US Federal Reserve have been weighing on the gold prices.

The recent developments in the Middle East have added to the market's uncertainty. Lebanon had announced a partial ceasefire between Hezbollah and Israel. However, Iranian state media later stated that Tehran was halting indirect negotiations with the US and might end the ceasefire, citing the war in Lebanon. US President Donald Trump announced that talks with Iran were ongoing “at a rapid pace.”

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Market analysts believe that gold prices have retreated from recent record highs due to rising Treasury yields and a firmer US dollar, which reduces the appeal of bullion. The uncertainty over the Fed's policy path also limits fresh safe-haven inflows. Investors are now awaiting this week's US monthly employment report and remarks from Federal Reserve officials for further clues on the timing of future policy moves.

Market participants are closely watching the US nonfarm payroll and employment reports, both due later in the week, to assess resilience in the labour market amid mounting concerns about inflation due to the Middle East conflict. The market will be keenly observing the labour market data to gauge the impact of the conflict on the economy.