Geopolitical Tensions Fuel Gold Price Surge

Gold prices increased significantly due to persistent geopolitical tensions in West Asia. In futures trade, gold rose by Rs 598 to Rs 1.59 per 10 grams. Analysts cite rising global bond yields and a stronger US dollar as key pressure points, along with energy-driven inflation risks.

In a turbulent trading session, gold prices saw a notable increase, climbing by Rs 598 to Rs 1.59 per 10 grams in futures trade amid ongoing geopolitical tensions in West Asia.

On the Multi Commodity Exchange, the yellow metal for June delivery rose by 0.38 percent, reaching Rs 1,59,145 per 10 grams. Meanwhile, on the international stage, Comex gold futures for June registered a slight decline, trading at USD 4,553.40 per ounce in New York.

Manav Modi, a Commodities Analyst at Motilal Oswal Financial Services Ltd, explained that gold prices suffered due to rising global bond yields, a stronger US dollar, and continuing Middle East tensions. He noted that US 10-year yields peaked at a one-month high, and Japanese yields surged to a 29-year high, fueled by energy-related inflation concerns amid the conflict between Washington and Tehran. Investors are keenly watching preliminary PMI data, US housing figures, and China's loan prime rate decision for insights on growth and inflation trends.