Gold slumps Rs 3,392 to Rs 1.45 lakh on weak global trends

Gold futures slumped Rs 3,392 to Rs 1.45 lakh per 10 grams on Friday, tracking weak global trends amid uncertainty over the implementation of a US-Iran peace agreement, which eroded demand for the precious metals.

On the Multi Commodity Exchange, the yellow metal for August delivery extended their losses for the second straight session, declining Rs 3,392, or 2.27 per cent, to Rs 1,45,917 per 10 grams in a business turnover of 9,099 lots. Analysts said the initial optimism over the US-Iran peace agreement faded after high-level talks scheduled in Switzerland were called off, raising doubts over the implementation of measures aimed at ending hostilities and restoring oil flows through the Strait of Hormuz.

Switzerland’s foreign ministry said talks scheduled for Friday to discuss the next phase of the agreement “have been postponed for the time being”. According to reports, US Vice-President JD Vance had postponed a planned visit, while Iran’s participation in discussions also remained uncertain.

These developments have left investors unconvinced that the peace process will be implemented smoothly, analysts said. Gold prices faced downward pressure on Friday amid a stronger US dollar, which has contributed to this decline, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said. In the global markets, Comex gold futures for the August contract declined $95, or 2.24 per cent, at $4,150.90 per ounce in New York.

The precious metal also remained under pressure from the Federal Reserve’s latest policy meeting, which reinforced expectations that interest rates may remain elevated for an extended period. The Federal Reserve kept its interest rates unchanged on Wednesday, however, policymakers signalled limited urgency to ease monetary policy, supporting the US dollar and Treasury bond yields.

Analysts noted that geopolitical uncertainty persisted after Israel conducted fresh strikes in Lebanon, despite the broader framework of the US-Iran agreement.  Bullion prices are likely to remain volatile as investors assess developments in West Asia and the outlook for global interest rates and economic growth, they added.

Silver futures sink 4 percent

New Delhi: Silver futures tumbled by Rs 8,766 to Rs 2.28 lakh per kg on Friday as investors dumped precious metals amid uncertainty over the US-Iran peace agreement and a broader selloff in the global markets. On the Multi Commodity Exchange, the white metal for July delivery slumped by Rs 8,766, or 4 per cent, to Rs 2,28,806 per kilogram in a business turnover of 11,080 lots.  The metal had suffered a steep correction in the previous session, plunging Rs 14,235, or 5.7 per cent, to close at Rs 2.37 lakh per kg from Wednesday’s closing level of Rs 2.51 lakh per kg. Analysts said optimism surrounding the US-Iran peace process faded after high-level talks scheduled in Switzerland were called off, raising doubts over the implementation of measures aimed at ending hostilities. US Vice President JD Vance postponed his visit to Switzerland. According to reports, no Iranian delegation had been confirmed, raising fresh questions about the timeline for restoring oil flows through the Strait of Hormuz.