New Delhi, May 25 (PTI) Gold prices appreciated by Rs 300 to Rs 1.65 lakh per 10 grams in the national capital on Monday due to a weak US dollar and optimism over a possible peace agreement between the US and Iran.
According to local marketmen, the yellow metal of 99.9 per cent purity increased by Rs 300 to Rs 1,65,200 per 10 grams (inclusive of all taxes) from Friday’s closing level of Rs 1,64,900 per 10 grams.
Silver prices, however, remained unchanged at Rs 2,71,000 per kilogram, market players said.
Analysts said gains in bullion prices were driven by easing geopolitical tensions, softer Treasury yields and a weaker dollar, although appreciation in the rupee capped further upside in domestic gold prices.
Gold traded with a mildly positive bias, though strong rupee appreciation limited the upside in the domestic prices, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.
The rupee appreciated by 35 paise to close at 95.25 (provisional) against the US dollar on Monday, marking its third straight session of gains, amid optimism that Washington and Tehran were moving closer to a peace deal despite continuing disagreements over issues, including restrictions around the Strait of Hormuz.
In the international markets, spot gold climbed USD 60.69, or 1.35 per cent, to USD 4,570.07 per ounce, while silver rallied more than 3 per cent to USD 78.18 per ounce.
“Gold began the new week positively, regaining some of the losses from the previous week as growing optimism about a potential US-Iran agreement alleviated worries about high energy prices and inflation pressures,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
According to reports, progress towards a diplomatic framework, including efforts to restore shipping activity through the Strait of Hormuz and ease regional tensions, supported broader market sentiment.
“Looking ahead, further developments surrounding US-Iran negotiations are expected to remain the key driver for precious metals’ trend this week.
“Continued diplomatic progress could support gold and silver by easing inflation concerns linked to energy markets, while any setback in negotiations or renewed geopolitical tensions may increase volatility and weigh on sentiment,” Gandhi said. PTI HG HG BAL BAL
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