MCX gold August futures rose ₹988, or nearly 1%, to ₹1.42 lakh per 10 grams, with a turnover of 551 lots. Silver September futures climbed ₹2,600, or 1.19%, to ₹2.21 lakh per kg, with a turnover of 1,017 lots.
Precious metals tracked gains in international markets, where Comex gold futures for August delivery rose nearly 2% to $4,082 per ounce. Silver futures gained 2.8% to $58 per ounce.
Analysts said gold prices recovered as markets weighed diplomatic efforts to ease tensions between the US and Iran, reducing some concerns around energy prices and inflation risks.
“Gold prices witnessed an uptrend in domestic markets driven by cooling of tensions surrounding the US-Iran conflict, which has alleviated some concerns about rising energy costs,” said Gaurav Garg, Research Analyst, Lemonn Markets Desk.
Renisha Chainani, Head of Research at Augmont, said gold prices have bounced back from support levels near $3,960 per ounce amid reports of possible ceasefire discussions between the US and Iran.
She added that while expectations of a stronger dollar and tighter monetary policy continue to weigh on bullion, lower investor positioning after months of ETF outflows could limit further declines. Strong physical demand, especially from China, along with continued central bank purchases, is supporting prices.
Gold technical outlook
Aamir Makda, Commodity & Currency Analyst, Technical Research at Choice Broking, said Comex gold has moved above its previous resistance levels and is trading above the 200-EMA on the hourly chart.
“Gold price has continued its upward momentum as investors weighed diplomatic efforts to ease the US-Iran conflict, which could temper oil-driven inflation risks and influence the US Federal Reserve’s interest rate path,” Makda said.
Market participants will also track currency movements, developments around the US-Iran situation and upcoming central bank policy cues for further direction in bullion prices.
