Gold, silver advance on weak dollar amid US-Iran peace hopes
Gold prices rose further by Rs 600 to Rs 1.56 lakh per 10 grams in the local market here on Thursday, following a pullback in the US dollar and easing crude oil prices amid hopes for a US-Iran peace deal.
Silver prices jumped by Rs 7,000 to Rs 2,61,500 per kg on improved industrial demand, marking the fourth straight day of gains, according to the All India Sarafa Association.
Gold of 99.9 per cent purity gained `600 to Rs 1,56,000 per 10 grams (inclusive of all taxes) from the previous close of Rs 1,55,400 per 10 grams. The metal had jumped Rs 2,900 per 10 grams on Wednesday.
Gold of 99.5 per cent purity traded at Rs 1,55,200 per 10 grams, according to the association.
Silver prices also advanced for the fourth consecutive day, surging by Rs 7,000 to Rs 2,61,500 per kg from the last close of Rs 2,54,500 per kg (inclusive of all taxes). The white metal had gained Rs 3,500 in the previous session.
“Gold extended its gains on Thursday as optimism around a potential US-Iran agreement continued to support sentiment across precious metals,” Saumil Gandhi, Senior Analyst — Commodities at HDFC Securities, said.
“Ongoing weakness in the US dollar drove additional support for precious metals. The dollar index traded below the 98 level. The pullback in the US dollar, influenced by market speculation regarding a potential US-Iran agreement to resolve the conflict, creates opportunities for easing monetary policy,” Gandhi added.
The US dollar index was trading down 0.14 per cent at 97.88 on Thursday.
Brent crude oil prices dropped more than 3 per cent to USD 97.97 a barrel.
In global markets, gold rose for the third straight day, with the spot gold gaining 0.9 per cent to USD 4,734.28 an ounce. Spot silver prices raced over 5 per cent to USD 81.35 an ounce.
“The increase in precious metals is largely attributed to easing tensions in the Middle East, particularly surrounding the US-Iran conflict, which has lifted market sentiment and bolstered safe-haven demand,” Gaurav Garg, research analyst at Lemonn, said.
