Gold Prices Hit Seven-Week High Amid US-Iran Diplomacy

Gold prices climbed to a seven-week high on Thursday, driven by sustained safe-haven demand and falling US Treasury yields. On the Multi Commodity Exchange, gold futures for October 5 hit an intraday high of Rs 1,49,700 per 10 grams, continuing a rally that began Wednesday when prices rose by ₹2,165 to reach ₹1.46 lakh. Internationally, COMEX gold rose to $4,320 per ounce by Thursday, up from approximately $4,226.50 on Wednesday.

The price surge occurred alongside diplomatic efforts to stabilize West Asia. President Donald Trump indicated that Washington is seeking an agreement with Iran, with reports suggesting the Strait of Hormuz could reopen. These developments contributed to a drop in oil prices, with Brent crude slipping below $80 and WTI crude dropping below $75.

Market analysts attribute the rise in bullion prices to reduced inflation concerns resulting from lower energy costs, which eased pressure on US monetary tightening. Meanwhile, the Reserve Bank of India maintained its benchmark repo rate at 5.25% for the fourth consecutive meeting to monitor inflation risks tied to these volatile energy prices.