MCX Gold Price Surpasses ₹1.59 Lakh per 10 Grams, Silver Gains Amid Hopes for US-Iran Diplomatic Resolution

Global Bullion Prices Surge Amid Renewed Expectations for US-Iran War Resolution

Gold and silver prices in India opened higher on the Multi Commodity Exchange (MCX) on Thursday, following gains in global bullion prices amid renewed expectations for a resolution to the US-Iran war. The international market saw gold prices rise, supported by lower crude oil prices and a weaker dollar.

In the global market, spot gold price gained 0.7% to $4,461.09 per ounce, while US gold futures for August delivery rose 0.5% to $4,487.90. Spot silver price rallied 0.6% to $73.13 per ounce. The surge in gold and silver prices is attributed to the optimism surrounding a potential resolution to the US-Iran conflict.

The hopes of an end to the broader US-Iran war were boosted after Israel and Lebanon agreed to implement a ceasefire to end hostilities. Additionally, the Republican-led US House of Representatives approved a resolution on Wednesday to block US President Donald Trump from continuing the war against Iran, as reported by Reuters. The reports of the Israel-Lebanon ceasefire drove crude oil prices lower, which in turn supported the rise in gold and silver prices.

Read also: Silver Price Surges Amid Dollar Decline and Oil Price Rebound on US-Iran Diplomatic Developments

The reports of a potential resolution to the US-Iran war have driven crude oil prices lower, reducing the risk of inflation and interest rate hikes. While gold is seen as a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal.