Gold Prices Surge as Global Markets Respond to Hopes of US-Iran Deal

Gold Prices Rebound in Mumbai Amid Optimism over US-Iran Deal and Seasonal Demand

Gold prices in the national capital of India rebounded sharply on Friday, with the precious metal appreciating by Rs 1,600 to Rs 1.62 lakh per 10 grams. The rebound follows a firm global trend, driven by optimism over a preliminary US-Iran deal and expectations of seasonal demand in the domestic market.

According to local marketmen, the gold price of 99.9 per cent purity rose by Rs 1,600 to Rs 1,62,900 per 10 grams (inclusive of all taxes) from the previous closing level of Rs 1,61,300 per 10 grams. Silver prices also strengthened sharply, jumping by Rs 5,000 to Rs 2,74,700 per kilogram (inclusive of all taxes).

The prices of gold and silver in the domestic market remained firm amid expectations of seasonal demand. Bullion markets remained closed on Thursday on account of Eid-ul-Azha.

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The precious metal prices in the domestic market remained firm amid expectations of seasonal demand. Market analysts believe that the underlying fundamentals continue to provide support to the gold price, and silver is likely to track gold's trend, aided by both safe-haven demand and industrial outlook.

In the international markets, spot gold gained nearly 1 per cent to USD 4,530.72 per ounce, while silver was trading flat at USD 75.52 per ounce. The US and Iran have agreed to a preliminary understanding that would extend the ceasefire by 60 days. However, the final text of the agreement is still awaited, with neither US President Donald Trump nor Iran's Supreme Leader Mojtaba Khamenei publicly commenting on the deal so far.

According to reports, the proposed memorandum of understanding is expected to normalise traffic through the Strait of Hormuz within 30 days, while both countries are likely to continue discussions on contentious issues, including Tehran's nuclear stockpile and uranium enrichment, during the ceasefire period.

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Market participants are closely watching developments surrounding the proposed US-Iran agreement and awaiting further comments from Trump, which could provide the next major trigger for bullion prices.