Gold Hits Five-Month High At ₹1.64 Lakh In Delhi, Silver Climbs ₹3,500 Amid US-Iran Tensions

Mumbai: Gold prices surged during the session to a more than five-month high in Delhi, supported by firm international trends, a weaker US dollar and safe-haven demand amid escalating tensions between the United States and Iran.

Gold of 99.9 percent purity advanced Rs 900 to Rs 1,64,400 per 10 grams, inclusive of taxes, according to the All India Sarafa Association. The precious metal had closed at Rs 1,63,500 on Friday.

Gold Returns To March Levels

The yellow metal was last quoted around its current level on March 9, when it traded at Rs 1,64,300 per 10 grams.

Silver Extends Rally

Silver prices rose for a third consecutive session, gaining Rs 3,500 to reach a more than four-month high of Rs 2,53,500 per kilogram, inclusive of taxes.

The white metal had settled at Rs 2,50,000 per kilogram in the previous session. Silver was last near this level on April 17, when it stood at Rs 2,53,000 per kilogram.

In international markets, spot gold jumped $42.45, or 1%, to $4,646.54 per ounce. Prices moved close to $4,650 as the global rally gathered strength. Spot silver remained flat at $69 per ounce.

Inflation Data In Focus

Bullion’s next direction could depend on inflation expectations and the US Federal Reserve’s response to higher oil prices resulting from the Iran escalation.

Investors will assess whether the central bank considers the energy price shock temporary or views it as a broader inflation threat that could delay monetary policy easing.

Attention will turn towards US Core Personal Consumption Expenditures data this week. The indicator is closely tracked by the Federal Reserve when assessing underlying inflation.

Markets will monitor Fed Chair Kevin Warsh’s debut at the Jackson Hole Symposium for signals about how much inflation the American central bank may tolerate.

Developments involving Iran, oil prices, the dollar and interest-rate expectations are likely to guide gold and silver prices in the near term.