Gold prices in India rose over 1% on Thursday, recovering from a sharp decline in the previous session amid global market shifts. The Multi Commodity Exchange (MCX) gold rate slipped below ₹1.53 lakh per 10 grams earlier but rebounded following the signing of an interim US-Iran peace deal. This development eased inflation concerns despite the US Federal Reserve signaling interest rate hikes later this year, according to livemint.com.
The price recovery followed a 1.7% drop in gold prices the day before, driven by the Federal Reserve's hawkish stance on monetary policy. However, the peace agreement between the US and Iran led to a fall in crude oil prices, which in turn supported bullion prices globally. Spot gold prices rose 1.5% to $4,322.41 per ounce, while US gold futures for August delivery fell 1% to $4,336.70 per ounce, as reported by livemint.com.
This price movement highlights the sensitivity of precious metals to geopolitical events and monetary policy signals. The US-Iran peace deal reduced inflation fears by lowering oil prices, which typically influence gold as a hedge against inflation. The Federal Reserve's indication of potential rate hikes usually pressures gold prices downward, making the recent rally notable. The MCX gold rate's fluctuations reflect these global dynamics impacting Indian markets.
On the MCX, gold prices remain volatile as traders respond to international developments and central bank policies. The next key data point for market watchers will be the US Federal Reserve's policy decisions later this year, which are expected to influence gold and silver prices further, according to livemint.com.