Gold Prices Rise as Trump Halts Bombing Campaign

Gold prices rose by Rs 984 to Rs 1.44 lakh per 10 grams in futures trade on Monday. This surge followed a decision by Donald Trump to halt a 13-day bombing campaign to facilitate diplomatic efforts, while Iran refrained from retaliatory attacks. This geopolitical easing also triggered a decline of more than 7 percent in crude oil prices, reducing immediate inflation concerns.

On the global market, the London Bullion Market Association gold price surged 1.8 percent to USD 4,067/oz. However, the World Gold Council characterized this rebound as a temporary breather within a broader downtrend that has persisted since January, noting that rising U.S. real and bond yields continue to weigh on the metal.

Market participants are now awaiting the United States Federal Reserve's upcoming interest policy decision and a scheduled speech by Chair Kevin Warsh. Investors are monitoring for guidance on interest rate paths and inflation outlooks, as any hawkish signals from the Federal Open Market Committee or unexpected rises in Personal Consumption Expenditures inflation data could increase downward pressure on bullion prices.