Gold Price Drops on Iran Talks: Market Update

New Delhi, May 22 (PTI) Gold prices retreated by Rs 600 to Rs 1.64 lakh per 10 grams in the national capital on Friday as tentative progress in US-Iran negotiations reduced precious metals buying, though unresolved tensions around the Strait of Hormuz kept traders cautious.

Snapping a three-day winning streak, the yellow metal of 99.9 per cent purity depreciated by Rs 600 to Rs 1,64,900 per 10 grams (inclusive of all taxes), according to local marketmen.

Gold prices witnessed a slight decline on Friday. The recent fluctuations in the bullion market are largely influenced by ongoing geopolitical tensions, particularly concerning US-Iran relations, alongside the volatility of the Indian rupee and movements in crude oil prices, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.

However, silver prices remained flat at Rs 2,71,000 per kilogram in the bullion market.


In the international markets, spot gold fell marginally lower to USD 4,522.32 per ounce, while silver slipped 1 per cent to USD 75.87 per ounce.

"Spot gold trading lower to USD 4522 per ounce on Friday as despite narrowing differences between Iran and the US, nuclear and Hormuz control remain contentious issues," Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.

Meanwhile, Washington has warned that shipping through the Strait of Hormuz should remain toll-free, keeping investors cautious despite signs of diplomatic progress between the US and Iran.

Bullion prices pared some losses after US Secretary of State Marco Rubio described the negotiations as showing tentative progress, though he flagged Hormuz control as a major sticking point.