Gold Price Drops Amid US-Iran Tensions

New Delhi, Jun 1 (PTI) Gold prices retreated by Rs 2,500 to Rs 1.60 lakh per 10 grams in the national capital on Monday, tracking losses in global markets as renewed military exchanges between the US and Iran spiked crude oil rates.

According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity depreciated by Rs 2,500, 1.53 per cent, to Rs 1,60,400 per 10 grams (inclusive of all taxes) from Friday's closing level of Rs 1,62,900 per 10 grams.

Silver prices also weakened sharply, falling Rs 5,000, or nearly 2 per cent, to Rs 2,69,700 per kilogram (inclusive of all taxes). The white metal had settled at Rs 2,74,700 per kg in the previous session.

"Gold started the week on a weaker note as renewed tensions between the US and Iran over the weekend boosted crude oil prices and strengthened the dollar," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.


He added that the rise in US Treasury bond yields also weighed on precious metals, limiting investor appetite for assets such as gold and silver.

In the international markets, spot gold fell nearly 1 per cent to USD 4,504.97 per ounce. However, silver rose 1 per cent to USD 75.93 per ounce.

Spot gold turned volatile, quoting USD 4,500 per ounce on Monday, and silver edged up towards USD 76 per ounce, as precious metals opened the week on a cautious footing amid lingering uncertainty over the US-Iran ceasefire framework, Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.

This week, market participants will closely watch the US jobs data, comments from Federal Reserve officials and Treasury Secretary Scott Bessent, Chainwala added.

Traders will also track further developments in West Asia for fresh cues on bullion prices, she noted.