Gold futures in India climbed to Rs 1.59 lakh per 10 grams on Monday, supported by a weakening US dollar and growing hopes of a peace deal between the United States and Iran. Analysts attributed the uptick to positive sentiment in global markets, though trading volumes remained thin as American markets were closed for the Memorial Day holiday.
Market Drivers
The rise in gold prices comes amid a broader trend of dollar weakness, which makes dollar-denominated commodities like gold cheaper for holders of other currencies. Additionally, optimism surrounding potential de-escalation in US-Iran tensions boosted safe-haven demand for the yellow metal.
Analyst Insights
According to market experts, US futures traded marginally higher during the session, but activity was subdued due to the US holiday. Participants are now awaiting cues from upcoming economic data and geopolitical developments. The combination of a softer dollar and geopolitical hopes provided a tailwind for gold, pushing it to the Rs 1.59 lakh per 10 grams level.
Outlook
Moving forward, gold prices are likely to remain sensitive to US dollar movements and any further news on the US-Iran front. A sustained peace deal could reduce safe-haven demand, while a weaker dollar may continue to support prices. Traders are advised to monitor global cues closely.
