Gold Leaps Ahead Amid Ceasefire Euphoria

Gold prices surged by Rs 3,007 to Rs 1.53 lakh per 10 grams amid a weak US dollar and relief from a US-Iran ceasefire. The decision eased geopolitical tensions and led to a correction in crude prices, boosting gold's value. Despite the increase, uncertainties linger over the ceasefire's longevity.

Gold prices experienced a significant boost on Wednesday, climbing by Rs 3,007 to reach Rs 1.53 lakh per 10 grams in futures trade. This surge was fueled by increased buying interest following the announcement of a US-Iran two-week ceasefire and a weakening US dollar, analysts highlighted.

The Multi Commodity Exchange recorded an appreciation in gold for June delivery by 2%, according to Manav Modi, a commodities analyst at Motilal Oswal Financial Services. The ceasefire, a decision announced by President Trump, helped avert immediate military tensions and positively influenced market sentiments.

Jateen Trivedi, VP Research Analyst at LKP Securities, noted that this rally stems from relief over the ceasefire, impacting broader risk assets. However, uncertainty lingers about the ceasefire's permanence and its effects on key supply routes, with global energy markets remaining watchful.

(With inputs from agencies.)