Gold rises to Rs 1.49 lakh/10g
Gold prices rose nearly 1 per cent to Rs 1.49 lakh per 10 grams in futures trade on Friday, tracking a firm trend in the overseas markets.
On the Multi Commodity Exchange, the yellow metal for August delivery increased by Rs 915, or 0.61 per cent, to Rs 1,49,847 per 10 grams in 9,122 lots.
“Gold prices surged nearly 1 per cent on Friday after US President Donald Trump announced that he had cancelled plans for a military strike on Iran,” brokerage firm Axis Securities said.
The move eased immediate geopolitical concerns and boosted demand for precious metals, it added.
Globally, Comex gold futures for the August contract appreciated by $88.75, or 2.16 per cent, to $4,202.75 per ounce in New York. “Bullion rebounded sharply from a six-month low after President Donald Trump said the US and Iran could reach a peace agreement as soon as this weekend. Gains were limited by uncertainty surrounding the negotiations, with Iranian officials denying that a final deal had been reached,” Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd, said.
Optimism over a potential diplomatic breakthrough helped ease concerns over global energy supplies, triggering a sharp decline in oil prices and improving risk sentiment across global markets, he added. However, investors remained focused on the inflation outlook after US producer prices rose more than expected in May, highlighting the continued impact of elevated energy costs on the economy.
Market participants will monitor the developments in US-Iran negotiations and commentary from Federal Reserve officials, which will be key in shaping expectations for interest rates and precious metals, Modi said.
