Gold Futures Rise 2% To ₹1.52 Lakh/10g Amid US-Iran Deal Hopes

Gold prices jumped ₹2,947 to ₹1.52 lakh per 10 grams in futures trade on Wednesday amid cooling oil rates and a weak US dollar, with traders reacting to signs that the US and Iran may be moving closer to a deal.

On the Multi Commodity Exchange, the yellow metal appreciated by ₹2,947, or 1.97%, to ₹1,52,700 per 10 grams in a business turnover of 9,273 lots.

Analysts said the price of the yellow metal rose as crude oil prices dropped after reports that Washington and Tehran were closing in on an agreement to bring an end to the war.

Iran has also announced that the Strait of Hormuz could reopen after US President Donald Trump paused his "Project Freedom" to guide commercial ships out of the economically vital waterway, according to reports.

"Gold prices surged on Wednesday, driven by a weaker dollar and easing crude oil prices amid speculation around potential US-Iran peace talks," Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.The decline in crude prices, with Brent oil trading below the $100 per barrel level in the overseas trade, has alleviated some inflationary pressures, prompting investors to flock to safe-haven assets such as gold, he added.

In the international markets, Comex gold futures for the June contract rose by $146.05, or 3.2%, to $4,714.55 per ounce in New York.

"Gold prices edged higher, recovering from a one-month low as the US reassured that its ceasefire with Iran remained intact despite elevated tensions around the Strait of Hormuz," Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd, said.

Sentiment saw further support from China's move to ease gold import rules, which could boost physical demand.

Market participants will focus on the PMI data from major economies later in the day, which will provide fresh cues on the interest rate cycle and near-term direction for precious metal prices, he added.