Gold Prices in India Soar to ₹1.51 Lakh Amid US-Iran Conflict Hopes, US Interest Rate Reduction in Focus

Gold Prices Witness Buying Interest Amid Ceasefire Buzz in US-Iran War

The gold market has seen a surge in buying interest in Asian and Indian markets during the morning session today, following the ceasefire buzz in the US-Iran war, easing inflation fears, and buzz for a US Fed rate cut. The MCX gold rate today opened with an upside gap at ₹1,51,427 per 10 gm and touched an intraday high of ₹1,51,870, logging an intraday gain of nearly 0.50%. The COMEX gold price today also saw buying interest in Asian markets during the morning session, reaching an intraday high of $4,751.26 per ounce.

The international market hit a two-week high as gold prices climbed to this intraday high. The US President Donald Trump has declared that the US military would vacate Iran in the next two to three weeks, as the US administration believes their goal of eliminating the country's nuclear threat has been achieved. This development has led to a decrease in pressure on the US dollar, which is also a reason for the rise in gold and silver rates today.

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Gold price today: Key levels to watch Expecting volatility in the gold and silver prices, Sugandha Sachdeva, Founder of SS WealthStreet, said that technically, international gold prices are supported near $4,170 per ounce, while resistance is placed around $4,850 per ounce. On the domestic front, prices are likely to find support near the ₹1,35,000-133500 zone, with a strong resistance zone seen around ₹1,57,600. A sustained break beyond this range will be required to establish a clear directional trend.

Gold fell more than 11% in March in its steepest monthly fall since October 2008 due to rising expectations of hawkish monetary policy and as the dollar emerged as a safe-haven winner since the Iran war started on February 28. Traders have almost completely priced out any chance of a U.S. Federal Reserve rate cut this year, from about two cuts expected before the war. Gold tends to thrive in a low-interest-rate environment as it is a non-yielding asset. Should geopolitical tensions de-escalate further, then expectations for Fed easing could return, providing support for gold.