Gold Prices Surge on MCX as US-Iran Framework Deal Nears Completion

Gold Prices Surge Amid Optimism Over US-Iran Peace Deal

Gold prices rose by Rs 426 to Rs 1.59 lakh per 10 grams in futures trade on Monday, tracking gains in global markets. The yellow metal for the June delivery increased by Rs 426, or 0.27 per cent, to Rs 1,59,105 per 10 grams in a business turnover of 5,312 lots on the Multi Commodity Exchange.

The surge in gold prices was driven primarily by a weaker US dollar and optimism surrounding a potential US-Iran peace deal. Analysts noted that easing crude oil prices, with WTI crude holding steady at USD 96.60 per barrel in the international markets, further bolstered the positive sentiment.

In the international market, Comex gold futures for the June contract rose nearly 1 per cent to USD 4,590.62 per ounce in New York. The sharp rise in gold prices was attributed to renewed optimism over a potential US-Iran peace agreement, which boosted sentiment across precious metals markets.

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Bullion benefited from a sharp decline in the US dollar and Treasury bond yields, while easing concerns over prolonged energy-driven inflation also supported prices. US futures traded marginally higher on Monday, with volumes remaining thin as American markets stayed closed for the Memorial Day holiday.

US President Donald Trump's announcement on Sunday that the framework for a peace deal with Iran was "largely negotiated" sparked hopes for de-escalation. However, Trump later clarified that there was "no hurry" to finalise the agreement, and the US naval blockade against Iran would remain in place for now.

Analysts noted that despite progress in negotiations, major differences remain over Tehran's nuclear programme, which Iranian officials have repeatedly rejected. Minutes from the Federal Reserve's April meeting scheduled last week showed policymakers remained open to further hikes if energy-driven inflation persists.

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Market participants will now closely watch the upcoming US GDP data and further developments in Middle East negotiations for fresh direction in bullion prices.