Gold and silver prices are rallying after US President Donald Trump announced an imminent peace deal with Iran, to be signed later this week. Gold is expected to trade in a range as investors assess a series of major central bank meetings, monitor progress in negotiations between the United States and Iran, and track movements in crude oil prices, according to market analysts. Attention will be centred on policy decisions from the Bank of Japan, the US Federal Reserve and the Bank of England. Investors will also watch inflation readings from the UK, Eurozone, Germany and Japan for clues about the future direction of global interest rates.
Gold Rate Today: Gold prices down 20% since war began
Gold has fallen roughly 20% since the outbreak of the US-Israeli conflict with Iran in late February. The disruption to traffic through the Strait of Hormuz had previously pushed energy prices sharply higher, fuelling inflation concerns and strengthening expectations that interest rates would remain elevated for an extended period.
Gold Rate Today: Rate hike expectations fall
Although gold is often viewed as a safeguard against inflation, higher borrowing costs typically diminish its appeal because the metal does not generate income. Expectations for a US interest-rate increase in December have also moderated. Data from the CME FedWatch tool showed traders now assign a 47% probability to a rate hike, compared with 69% a week earlier.
Silver Rate Today: Spot gold surges 3%
Among other precious metals, spot silver jumped 3.1% to $70.07 an ounce, platinum rose 3.1% to $1,771.27 and palladium gained 3.3% to $1,325.76.
Gold Rate Today: Spot Gold rallies over 2%
Gold prices advanced 2% on Monday after officials from the United States and Iran announced that they had reached an initial understanding aimed at ending hostilities between the two countries. The development triggered a decline in oil prices and reduced concerns about persistent inflation and elevated interest rates. Spot gold rose 2% to $4,304.11 an ounce by 0122 GMT, reaching its highest level since June 9. US gold futures for August settlement also gained 2%, trading at $4,325.20.
Gold Rate Today: Gold price outlook
“Gold price may consolidate in the near term, amid mixed macro signals while some pressure may build up over rate hike expectations, a stronger dollar, and elevated bond yields. Short-term volatility of around ±5% is likely on Geopolitical developments, particularly around the US–Iran conflict. For Indian investors, rupee depreciation should cushion the downside, keeping domestic gold prices in a tighter range versus international markets. The medium-to-long-term outlook is still bullish over supportive structural and cyclical fundamental factors. Investors may look for accumulation on any decline in the prices,” says Tata Mutual Fund in its latest outlook.
Analysts believe developments surrounding the US-Iran agreement will remain a key influence on bullion markets. Experts said that markets will closely monitor whether the agreement is formally signed. A successful conclusion could support a broader rally across risk assets and potentially benefit gold and silver as well, while any deterioration in the situation could hurt market sentiment, say experts.
In the domestic market, MCX gold futures for August delivery ended last week lower by Rs 5,066, or 3.2%, settling near Rs 1.50 lakh per 10 grams. Silver futures for July delivery also weakened, declining Rs 2,351, or close to 1%, to around Rs 2.46 lakh per kilogram. Gold prices came under considerable pressure during the week, falling more than 3% and briefly testing the Rs 1.48 lakh per 10 gram mark on MCX.
(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)
