New Delhi, May 29: Gold prices rebounded by Rs 1,600 to Rs 1.62 lakh per 10 grams in the national capital on Friday, tracking firm global trends amid optimism over a preliminary US-Iran deal and expectations of seasonal demand in the domestic market.
According to local marketmen, the yellow metal of 99.9 per cent purity appreciated Rs 1,600 to Rs 1,62,900 per 10 grams (inclusive of all taxes) from Wednesday’s closing level of Rs 1,61,300 per 10 grams.
Silver prices also strengthened sharply, jumping Rs 5,000 to Rs 2,74,700 per kilogram (inclusive of all taxes). The white metal had settled at Rs 2,69,700 per kg in the previous session.
Bullion markets remained closed on Thursday on account of Eid-ul-Azha.
“Gold and silver prices have edged higher as markets assess US-Iran ceasefire developments and the US Federal Reserve’s interest rate outlook following recent inflation data,” Hareesh V, Head of Commodity Research, Geojit Investments Ltd, said.
The precious metal prices in the domestic market remained firm amid expectations of seasonal demand, he added.
“We do not foresee significant selling pressure in the near term, as underlying fundamentals continue to provide support. Silver is also likely to track gold’s trend, aided by both safe-haven demand and industrial outlook,” Hareesh said.
In the international markets, spot gold gained nearly 1 per cent to USD 4,530.72 per ounce, while silver was trading flat at USD 75.52 per ounce.
“Spot gold rose nearly 1 per cent in the overseas trade as talks of a preliminary deal between the US and Iran have reduced downside pressure on the yellow metal.
“However, lack of details of the deal will keep it range-bound,” Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.
According to reports, the US and Iran have agreed to a preliminary understanding that would extend the ceasefire by 60 days.
As part of the proposed memorandum of understanding, Iran is expected to normalise traffic through the Strait of Hormuz within 30 days, while both countries are likely to continue discussions on contentious issues, including Tehran’s nuclear stockpile and uranium enrichment, during the ceasefire period.
However, the final text of the agreement is still awaited, with neither US President Donald Trump nor Iran’s Supreme Leader Mojtaba Khamenei publicly commenting on the deal so far.
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, market participants are closely watching developments surrounding the proposed US-Iran agreement and awaiting further comments from Trump, which could provide the next major trigger for bullion prices.
