Gold Jumps ₹3,007 To ₹1.53 Lakh Per 10 Grams As US-Iran Ceasefire Triggers Relief Rally In Futures Trade

New Delhi, Apr 8: Gold prices jumped Rs 3,007 to Rs 1.53 lakh per 10 grams in futures trade on Wednesday due to increased buying on the back of a weak US dollar and relief sentiment after Washington and Tehran agreed to a two-week ceasefire. On the Multi Commodity Exchange, the yellow metal for June delivery appreciated by Rs 3,007, or 2 per cent, to Rs 1,53,296 per 10 grams.

Weak dollar and ceasefire boost sentiment

Gold prices were supported by a weaker US dollar after President Trump announced a two-week ceasefire with Iran, averting imminent military escalation, Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, said.

The decision to suspend strikes on Iran's civilian infrastructure came just hours before a key deadline, easing geopolitical tensions and improving overall market sentiment, he added.

Analysts cite relief rally and crude correction

Echoing similar sentiments, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said the rally in gold is largely driven by relief sentiment after the US-Iran ceasefire, which led to a sharp 15 per cent correction in crude prices, supporting broader risk assets.

"However, this move is more of a relief rally and short covering, as uncertainty still persists regarding the durability of the ceasefire and reopening of key supply routes," Trivedi added.

Gold still below pre-escalation levels

Despite the rebound, gold futures remain below the levels seen before the escalation in West Asia. During the conflict, prices declined Rs 12,363, or 7.5 per cent, from Rs 1,65,659 per 10 grams recorded on February 27, 2026.

Global markets and price outlook

Globally, gold futures for the June contract appreciated USD 129.12, or nearly 3 per cent, to USD 4,813.82 per ounce. Gold climbed to a near three-week high after President Trump announced a two-week US-Iran ceasefire, with Tehran agreeing to reopen the Strait of Hormuz, Renisha Chainani, Head - Research at Augmont, said.

She noted that markets interpreted this as a significant de-escalation, triggering a broad relief rally across risk assets. The ceasefire opens a negotiating window to end the six-week conflict, which has caused heavy casualties and triggered a global energy crisis. Reopening the Strait is particularly critical for major Asian oil importers -- India, China, and South Korea, she added.

Uncertainty over ceasefire durability

Meanwhile, Trump confirmed the receipt of a 10-point Iranian proposal, describing it as a workable foundation for a lasting agreement within the two-week timeframe.

"Trump has repeatedly set and extended deadlines without resolution. A two-week window is not a permanent fix. If shipping lanes reopen and oil stabilises, it could mark a genuine turning point, but any breakdown in talks risks a sharp reversal of the current rally," Chainani said.

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Bullish momentum signals further upside

On the outlook, she further stated that gold has given a breakout above USD 4,800 per ounce (Rs 1.53 lakh per 10 grams in the domestic markets), signalling bullish momentum. The next upside target is USD 5,000 in the global markets, amounting to Rs 1.59 lakh per 10 grams.

(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)