Gold Hits 7-Week High Near ₹1.50 Lakh

Gold prices climbed to a seven-week high on Thursday as falling US Treasury yields strengthened safe-haven demand. This surge in gold prices outweighed optimism about a possible US-Iran agreement.

Gold futures for October delivery opened higher at ₹1,49,029 per 10 grams, gaining ₹536 or 0.36 percent. The contract later touched ₹1,49,700, gaining ₹1,207 or 0.81 percent, by 12.10 pm.

Global gold prices also rose, with COMEX gold gaining 0.36 percent to trade at $4,320 an ounce. COMEX silver rose 0.12 percent to $62.36 an ounce. However, silver futures in India initially reached ₹2,28,397 per kg, up ₹813 or 0.35 percent, but later reversed course and traded ₹1,004 or 0.44 percent lower at ₹2,26,580.

Despite reports that the Strait of Hormuz could reopen and remarks by US President Donald Trump suggesting Washington was seeking an agreement with Iran, gold prices continued to rise. Experts said easing tensions could pull crude oil prices lower, reducing inflation concerns and expectations of near-term US monetary tightening. This pushed Treasury yields down and improved gold's appeal.

Gold faces immediate resistance at ₹1,50,000–₹1,50,700. A decisive breakout could take prices towards ₹1,52,200–₹1,52,800. Immediate support lies at ₹1,48,600–₹1,48,000, followed by ₹1,46,600–₹1,46,000.

The bias remains positive above ₹1,49,000, with prices having moved above the 20, 50, 100 and 200-day exponential moving averages, signalling stronger momentum. Silver must sustain above ₹2,29,000 to target ₹2,31,500–₹2,32,500. Support is placed at ₹2,25,000–₹2,24,000, followed by ₹2,22,000–₹2,21,000.

Analysts remain cautiously constructive above ₹2,28,000. A fall below ₹2,27,000 could trigger a retreat towards ₹2,25,000. A move above ₹2,30,000 could open the way for further gains. Silver's RSI stood at 54 and edged higher, indicating improving momentum.

Brent crude declined 0.51 percent to below USD 80 a barrel, while US West Texas Intermediate crude fell nearly 1 percent to below $75. Softer energy prices reinforced expectations that inflationary pressure could ease if regional tensions continue to recede.

The surge in gold prices is significant for investors and consumers alike, as it reflects the ongoing geopolitical tensions and their impact on the global economy. As the situation continues to unfold, it is likely that gold prices will remain volatile, influenced by a range of factors including US-Iran relations, crude oil prices, and monetary policy decisions.

In conclusion, the recent surge in gold prices to a seven-week high near ₹1.50 lakh per 10 grams is a significant development, driven by a combination of factors including falling US Treasury yields, geopolitical tensions, and softer energy prices. As the global economy continues to navigate these challenges, it is likely that gold prices will remain a key area of focus for investors and consumers alike.